Government is considering re-imposing ad-valorem tax on alcoholic and non-alcoholic beverages, as well as on tobacco products.This means the prices of these products could soon go up.
Excise duty on these products is fixed, but with the re-introduction of the ad-valorem tax, a percentage will be charged on the ex-factory price of each item.
This implies that the amount paid as tax could go up when the product price goes up.
Government says it is bringing back the ad-valorem tax because a study it carried out over a 10-year-period shows the State is losing money by not imposing specific taxes on these products.Although government is yet to come out with the percentage it intends to charge, businesses are already expressing displeasure over the new move.
No comments:
Post a Comment