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Price Of Pure Water Could Increase From N20 To N50 Says Manufacturers

...As Government Plans New Tax Monday

Water Producers Association of Nigeria (WAPAN) has stated that the price of ‘pure water’ could  rise from the present N20 to about N50 per sachet if the federal government implements the proposed Excise Duty on carbonated beverages. 

This was disclosed by the National President of WAPAN, Eneri Odiri Jackson at an event in Lagos. Nigerians have witnessed sachet of water rise three times within the year from N5 to N10 and to N20. 

The House of Representatives Committee on Finance had in August 2021, resolved that it would amend the Finance Act to include levies on all carbonated and non-carbonated drinks. 

WAPAN’s National President, Eneri Odiri Jackson, said the implementation of taxes on chemicals used in water production would have a multiplier effect on the economy, according to DailyTrust. 

Jackson said: “There is no doubt that the price of pure water will rise from the present N20 to about N50. I recommended that the government consults broadly next year, before moving on with the policy." 

Mrs. Clementina Chinwe Ativie, the National President of the Association for Table Water Producers of Nigeria (ATWAP), said the group’s membership has decreased by 16,000 as a result of various economic challenges, despite the fact that the price of table water per unit has increased by over 150% in the last two years.

She urged: “Let’s suspend the idea of reintroducing the excise duty on both carbonated and non-carbonated beverages." 

Pushing for the reintroduction of the excise duty is Comptroller-General of Customs, retired Col. Hammed Ali. According to him bringing carbonated non-alcoholic and alcoholic drinks under excise control will cushion the effects of the over-dependence on oil/import duty revenue. 

He said: “Away from the revenue view, the health and environment hazards presented by the production and consumption of carbonated drinks will be reduced, bringing them under regulation and control.”

The Customs DG reiterated the need for stakeholders to dialogue on the concerns raised by Nigerian manufacturers. 

Soft Drinks to Get More Expensive In a related story, had reported that the Nigeria Customs Service (NCS) has been lobbying for the reinstatement of excise duty on soft drinks, which was repealed in 1993. 

The return of excise duty, according to NCS, would result in a large increase in income for the Federal government. 

But Manufacturers, on the other hand, feel it will affect their revenue and lead to an increase in soft drink prices. 

Source: Legits

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