Stakeholders within the manufacturing sector have expressed deep issues over the choice of the federal authorities to proceed with its deliberate tax stamp system on excisable merchandise regardless of its potential unfavourable impacts on the business.
Business sources, who spoke with Nairametrics, stated the mission, which can also be known as monitor and hint methods, may undermine the delicate restoration recorded within the business because it locations an extra {financial} burden immediately on producers and not directly on Nigerian customers.
Tax stamp system is a regulatory mechanism the place governments require a bodily, high-security label or digital code to be affixed to excise items equivalent to alcohol, tobacco, and sugary drinks to show that taxes have been paid.
Though the federal government has not formally introduced the date of the mission graduation, the Comptroller-Common of Customs, Adewale Adeniyi, was stated to have met with stakeholders lately to intimate them with the plans.
On the assembly, the CG launched the seller chosen for the mission, an American-based firm, Authentix, Inc.
Whereas acknowledging that the federal government might have provide you with the initiative to curb illicit commerce, enhance transparency within the excise regime, and increase income, they stated the system comes with its operational challenges and {financial} dangers to producers.
One other who was on the assembly with the Customs stated the business can also be involved that the mannequin promoted by Authentix, Inc. is a hybrid tax stamp system.
He famous that the federal authorities has already invested in digital methods that ship full visibility of excise operations.
In accordance with him, the Nigeria Customs Service lately launched and piloted the B’Odogwu automated Excise Reporting System (ERS), a contemporary platform that digitizes excise administration.
He urged the federal government to maintain present home-grown digital methods that ship full visibility of excise operations fairly than embarking tax stamp system that leverages international know-how.
Prior to now, business stakeholders have voiced their opposition to the proposed tax tamp system, citing its potential implications on the business.
Able paper despatched to the federal government September final yr, when the proposed mission first turned public data, the Producers Affiliation of Nigeria (MAN) stated the tax stamp system contradicts the Nigeria Tax Act 2025.
MAN additionally warned that the excessive logistical prices and dangers related to tax stamps primarily profit the seller, not the federal government or the business.
In January this yr, Consulting Agency, PwC, additionally issued a place paper to the federal government on the mission.
In the place paper, a replica of which was seen by Nairametrics, PwC famous that with the proposed introduction of e-invoicing by the FIRS and the B’Odogwu portal by the Nigeria Customs Service, the business is already subjected to a number of taxation and compliance checks.
The group added that regulated corporations would possibly discover passing the incremental value to customers, leading to larger costs of regulated merchandise. This, it stated, would end in a shift in market demand in the direction of cheaper and illicit options.
Final yr, the Infrastructure Concession Regulatory Fee (ICRC) had confronted robust criticism for its issuance of “No Objection” certificates to a Swiss-based firm, Société Industrielle et Commerciale de Produits Alimentaires, SICPA, as the only real firm for the deployment of the monitor and hint system in Nigeria.
The current introduction of US-based Authentix, Inc. urged the federal government had made a U-turn from the earlier resolution to make use of SICPA.
Authentix is a specializes Observe and Hint methods with a long-standing historical past in Africa. The corporate managed Ghana’s tax stamp program, which was additionally controversial amongst native producers resulting from its excessive value.
