tobacco earlier approved by President Muhammadu Buhari has taken effect from today Monday, June 4, the Federal Government had disclosed.
announced that the president had granted a grace period of 90 days to
manufacturers of the products.
spread over a three-year period from 2018 to 2020 in order to moderate the
impact on prices of the products.
rates for alcoholic beverages and tobacco was to raise the government’s fiscal
associated with tobacco-related diseases and alcohol abuse.
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.
addition to the 20 per cent ad-valorem rate, each stick of cigarette will
attract one naira specific rate per stick; that is N20 per pack of 20 sticks in
specific rate per stick or N40 per pack of 20 sticks.
attract N2.90 kobo specific rate per stick or N58 per pack of 20 sticks.
specific excise duty rate for tobacco was 23.2 per cent of the price of the
most sold brand.
per cent in South Africa and 30 per cent in Gambia.
for alcoholic beverages cut across beer and stout, wines and spirits for the
three years, 2018 to 2020.
0.30k per centilitre (Cl) in 2018 and 0.35k per Cl each in 2019 and 2020.
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 per Cl in 2020.
(CPC), Babatunde Irukera, said the decision to increase the excise duty on these
commodities was consistent with prevailing global practices.
foster consumer confidence, provide regulatory clarity and prioritise safety,
to reinforce the mandate of the council.
Director, Environmental Rights Action of Earth Nigeria, described the decision
to increase excise duty on tobacco as praise-worthy.
products priced beyond the reach of our kids and the poor who are unfortunately
targeted by the tobacco industry through their cheap but lethal products.
is necessary to take stringent measures to halt the deliberate marketing of
tobacco products to kids,” Mr Oluwafemi said.
Nigeria, Frank Jacobs, expressed fear that the proposed hike may lead to close
of factories and loss of jobs in the country.
had at its 62nd and 79th Ordinary Sessions in Abuja in May 2009 and December
2017, issued directives on the harmonisation of the ECOWAS Member States’
Legislations on Excise Duties.
its 2017 mission report advised Nigeria to raise the excise duty on a stick
cigarette to N5, which is five times the approved amount.
highest alcohol drinking country in Africa and leads the top 10 largest beer drinking
countries,” the Fund said.
recommendations of the World Health Organisation (WHO) in Article 6 of the
Framework Convention on Tobacco Control (FCTC), which suggests 70 per cent
excise on tobacco products.