Oyibo argued that the justification by the National Assembly, the Customs, and the Finance Ministry that manufacturers of non-alcoholic drinks were making excessive profits was not enough to subject them to another tax burden that could cripple them.
He said the argument that there was a 30 per cent excise levy on alcoholic drinks should not be a yardstick for the federal government to tax the non-alcoholic drinks sector, warning against introduction of excise duty on non-alcoholic carbonated drinks, adding, “if government goes ahead to introduce exercise duty on soft drinks, the country will be in a total mess and outright collapse of the sector.
“The 30 per cent excise levy on alcoholic drinks is not enough justification to subject companies that are struggling to survive to another financial burden. If this country needs to survive, Food, Beverage and Tobacco Sector must be taken care of.
The federal government must engage all stakeholders constructively to arrive at a more beneficial conclusion to save the already struggling companies in the sector that are only surviving on a small profit margin.”