The Center For The Promotion Of Private Enterprise, CPPE, has reacted to some tax and import duty provisions in the 2023 Fiscal Policy Measures of the Federal Government saying that it would significantly hurt the economy and worsen the de-industrialization worries in the Nigerian economy.
The Chief Executive Officer, CEO, of the Center, Dr. Muda Yusuf, after appraising the policy, in a document shared with Oriental News Nigeria, said, construction and transportation sectors are also vulnerable to fiscal policy induced downside risks.
Some of the measures, he warned could exacerbate inflationary pressures which are detrimental to economic growth and manufacturing, construction and transportation sectors.
“It is double whammy for economic players to contend with a regime of high import duty, prohibitive tax rates amid a depreciating currency.
Fiscal policy measures must seek to ensure a good balance between objectives of revenue generation, boosting domestic production, enhancing the welfare of citizens, promoting economic growth, deepening economic inclusion, facilitating job creation and recognizing societal ethos, beliefs and values.” he warned.
The fiscal policy measures imposed rates on Non-Alcoholic Beverages, Fruit Juice, Energy Drink Excise, duty of N10 per liter Beer And Stout: 20 per cent Ad valorem Tax; N75/Litre
He noted that Ad valorem tax is based on the value of the product, which makes the impact even more injurious to industrialists and therefore sustaining current investments in these sectors would be a herculean task.
These policy measures failed to reckon with the multifarious challenges which industry operators are currently grappling with, some of which include the following.
Weak and declining consumer purchasing power, he said.