Tax Stamp roll-out can worsen inflation — Group

THE beer industry has thrown its weight behind the Manufacturers Association of Nigeria, MAN, urging the Federal Government to rescind the proposal to introduce tax stamps. 

The industry urged the Federal Government to sustain existing home-grown digital systems that deliver full visibility of excise operations and reject the proposal to introduce tax stamps which has unintended consequences on the productivity of the industry and revenue generation.

The Executive Director of the Beer Sectoral Group of MAN, Abiola Laseinde, in a statement stated that the tax stamps will be counterproductive, warning that the system presents operational challenges and financial risks that could undermine the fragile recovery of the manufacturing industry and the Nigerian economy.

Laseinde said: “The tax stamps system is largely inefficient, causing production slowdowns, distribution delays, product stock-outs, and high compliance costs. Industry is concerned that this proposal is coming at a time when operators are already grappling with rising excise rates, foreign exchange volatility, and high inflation—making the additional burden of implementing tax stamps a serious threat to business sustainability.

“Furthermore, tax stamps, which are often positioned as a solution to illicit trade, would have no benefit to beer as there is zero illicit in the sector. The brewing process is complex, the product is bulky, and resale value is low—making counterfeiting unprofitable. It is also pertinent to note that the beer industry already maintains strict compliance, with digital counters, on-site Customs officers, and auditable records in place.

“The Federal Government has already invested in digital systems that deliver full visibility of excise operations. Most recently, the Nigeria Customs Service, NCS, successfully launched and piloted the B’Odogwu automated Excise Reporting System, ERS, a modern platform that digitizes excise administration."