President Muhammadu Buhari has approved an amendment to the excise duty rates for alcoholic beverages and tobacco with effect from June 4, 2018.
In a statement in Abuja on Sunday, Kemi Adeosun, the Minister of Finance, said the new excise duty rates were spread over a three-year period from 2018 to 2020 in order to moderate the impact on prices of the products.
The minister said the new excise duty regimes followed all-inclusive stakeholder engagements by the Tariff Technical Committee of the Federal Ministry of Finance with key industry stakeholders.
According to her, the upward review of the excise duty rates for alcoholic beverages and tobacco was to achieve a dual benefit of raising the government’s fiscal revenues and reducing the health hazards associated with tobacco-related diseases and alcohol abuse.
“The Tariff Technical Committee (TCC) recommended the slight adjustment in the excise duty charges after cautious considerations of the Government’s Fiscal Policy Measures for 2018 and the reports of the World Bank and the International Monetary Fund Technical Assistance Mission on Nigeria’s Fiscal Policy.
“The effect of the excise duty rates adjustment on trade and investment was also assessed by the Federal Ministry of Trade and Investment and it adopted the recommendations of the TTC.
“Furthermore, peer country comparisons were also carried out showing Nigeria as being behind the curve in the review of excise duty rates on alcoholic beverages and tobacco.”
Following the president’s approval, Mrs. Adeosun said the new excise duty rate on tobacco was now a combination of the existing ad-valorem base rate and specific rate while the ad-valorem rate was replaced with a specific rate for alcoholic beverages.
“For alcoholic beverages, the current ad-valorem rate will be replaced with specific rates and spread over three years to moderate the impact on prices,” she said.
“This will curb the discretion in the Unit Cost Analysis (UCA) for determining the ad-valorem rate and prevent revenue leakages.
“For tobacco, the government will maintain the current ad-valorem rate of 20 per cent and introduce additional specific rates with the implementation to be spread over a three-year period to also reasonably reduce the impact on prices.”
Under the newly approved excise duty rates for tobacco in addition to the 20 per cent ad-valorem rate, each stick of cigarette will attract a N1 specific rate per stick (N20 per pack of 20 sticks) in 2018; N2 specific rate per stick (N40 per pack of 20 sticks) in 2019; and N2.90k specific rate per stick (N58 per pack of 20 sticks) in 2020.
The Minister explained that Nigeria’s cumulative specific excise duty rate for tobacco was 23.2 per cent of the price of the most sold brand, as against 38.14 per cent in Algeria, 36.52 per cent in South Africa and 30 per cent in Gambia.
The new specific excise duty rate for alcoholic beverages cuts across Beer & Stout, Wines and Spirits for the three years 2018 to 2020.
Under the new regime, beer and stout would attract N0.30k per centiliter (Cl) in 2018 and N0.35k per Cl each in 2019 and 2020.
Wines would attract N1.25k per Cl in 2018 and N1.50k per Cl each in 2019 and 2020, while N1.50k per Cl was approved for Spirits in 2018, N1.75k per Cl in 2019 and N2.00k per Cl in 2020.
The minister added that the new excise duty regimes are in line with the Economic Community of West African States (ECOWAS) directive on the harmonisation of member-states’ legislations on excise duties.
It would be recalled that the ECOWAS Council of Ministers had at its 62nd and 79th Ordinary Sessions in Abuja in May 2009 and December 2017, respectively, issued directives on the harmonisation of the ECOWAS Member States’ Legislations on Excise Duties.
The directives seek to harmonise member-states’ legislations on excise duties of non-oil products and also stipulate the scope of application, rate of taxation, taxable event and amount.
Latest Nigeria News
- Thieves On The Chest
- Black Face complains: ''2face owes me money, and he won't pay back''
- Steady rise in prostitution despite ban in Abuja
- Mercy Johnson And Tonto Dike In A War Of Words
- Video Of Nigerian Lawmakers In A Bloody Fight
- Miss Unizik Nude Photos Leaked By Ex-Boyfriend
- Big Boy: Ice Prince Wears Same Givenchy Shirt As P Diddy To BET Awards
- Shameful - Iyanya Tattooed Yvonne Nelson's Name On His Wrist
- 2 Unilag Students Dead, 3 Others Almost Dead After Fatal Car Accident [Photos]
- Omotola Poses For THISDAY Style Photoshoot
- Hot or Not? - Genevieve's Dress To Ebony Life TV Launch
- Celestial Church Prophet Owolere Odunuga Jailed In Kirikiri Over Visa Fraud
- ASUU Embarks on a Total and Indefinite Nation-wide Strike from 1st July
- Super Eagles’ Handler: Keshi or foreign coach?
- 11 Burnt To Death In Ibadan Auto Accident
- Former Nollywood Actress Eucharia Anunobi In Senegal For 7-Day Crusade
- Stephanie Okereke-Linus Bags Africa Women Awards
- Federal Government bans civil servants from taking chieftaincy titles
- Omotola's Waka-Pass Role On American National TV Show
- £3,000 visa bond: Federal Government warns British govt
- First Bank Nigeria Plc Security man breaks ATM, steals N12m
- John Olumba, 31-Year Old Nigerian Running For Detroit Mayor
- Whats up with this picture?
- Why President Barack Obama Is Not Visiting Nigeria
- Most Overexposed Celebrities In Nigeria
- Wizkid Tells Unilag Students: ‘I don’t do cheap money’
- Islamic cleric Rapes Teenager During Deliverance
- Is This A Case Of "Bad" Underwear?
- Police declare Alhaja Sinatu Ojikutu, ex-deputy gov of Lagos State wanted for fraud
- Nigerians support anti same-sex Bill
- Another Baby Born With Quran In Lagos
- Ondo Female Legislator Fola Olasehinde Suspended Over Possession Of Fetish Objects
- Female Student Raped By Security Man And 5 Students At A Private Polytechnic In Ekiti State
- Governor Sanusi Freezes Bank Accounts Of Nigerian Churches
- OAU student gives birth and attempts to flush new born baby down the toilet in school hostel
- Tope Alabi Fights With Spiritual Father, Prophet Ajanaku
- Pressure Mounts On Hubby To Dump Ini Edo
- Keturah Hamilton: Jim Iyke Used And Dumped Me
- Keturah Hamilton: Jim Iyke Used And Dumped Me
- Are Tribal Marks Still Necessary Today?