The Nigeria Labour Congress (NLC) has rejected the imposition of tax on carbonated drinks in the country, and thereby called on the Federal Government to rescind its decision on the issue.
In a statement issued, on Friday, by NLC president, Comrade Ayuba Wabba, the organised labour observed that apart from the eventual revenue losses, the policy would lead to loss of 1.5 million decent jobs.
It cautioned the Federal Government not to allow the current situation degenerate into a breakdown in industrial relations in the sector and generally in the country.
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The NLC, therefore, urged the National Assembly to urgently amend the sections of the Finance Act 2022 that re-introduced excise duties on non-alcoholic and carbonated drinks.
While justifying their position, the NLC said that the food and beverage sub-sector has generated to the coffers of government N202 billion VAT in the past five years, N7.3 billion as Corporate Social Responsibility and has created 1.5 million decent jobs both directly and indirectly.
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In addition, the organised Labour said the Federal Government also stands to lose N197 billion in Value Added Tax (VAT), Company Income Tax and Tertiary Education Tax as a consequence of expected downturn in overall industry performance, should the excise duties be effected as being planned.
Recall that President Muhammadu Buhari had, on December 31, 2021, signed into law the Finance Act 2021.
Some of the provisions of the Finance Act include imposition of excise duties on locally produced non-alcoholic, carbonated and sugary drinks.
