The law provides specific reliefs and exemptions from excise duty to support diplomatic relations, domestic industries, and public welfare.
General Excise Exemptions
Certain entities and categories of goods are legally exempt from paying excise duties. These include:
- Goods purchased for the official use of diplomatic missions, United Nations agencies, and registered aid organizations.
- Excisable goods exported from the country to international markets (to keep exports competitively priced).
- Religious objects, laboratory equipment for schools, and specialized medical supplies.
Excise Remissions
A remission is a partial or total waiver of the excise tax granted by the government to incentivize a specific socio-economic behavior.
- Example: Neutral spirit or denatured alcohol used strictly in the manufacture of affordable hand sanitizers or industrial cosmetics may qualify for an excise remission.
- Local Sourcing: Governments sometimes grant excise remissions to breweries that source 100% of their raw materials (such as sorghum, millet, or barley) from local small-scale farmers.
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