Alcohol consumers, smokers to pay more as federal govt raises excise duty

By News Agency of Nigeria -
March 11, 2018


President Muhammadu Buhari has approved an amendment to the excise duty rates for alcoholic beverages and tobacco with effect from Monday, June 4, 2018 the Minister of Finance, Mrs. Kemi Adeosun, has said.
In a statement in Abuja on Sunday, Adeosun said the President also granted a grace period of 90 days to manufacturers of the products before the commencement of the new duty regime.
She said the new excise duty rates would 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 duty regime 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 raise the government’s fiscal revenues.
She said that it would also reduce the health hazards associated with tobacco-related diseases and alcohol abuse.
Adeosun said the new duty rate on tobacco was 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.


“This will curb the discretion in the Unit Cost Analysis 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,’’ Adeosun said.

She said that 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 one naira specific rate per stick, that is N20 per pack of 20 sticks in 2018,
She said that tobacco would in 2019 attract duties of two naira specific rate per stick, that is N40 per pack of 20 sticks in 2019 and N2.90 kobo specific rate per stick, that is N58 per pack of 20 sticks in 2020.
Adeosun 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.
She said also that the new specific excise duty rate for alcoholic beverages cut across beer and stout, wines and spirits for the three years, 2018 to 2020.


Under the new regime, beer and stout will attract .30k per centilitre in 2018 and 35k per cl each in 2019 and 2020.
Wines will 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 per Cl in 2020.
Adeosun said that the new excise duty regimes were in line with the Economic Community of West African States directive on the harmonisation of member-states’ legislation on excise duties.
The ECOWAS Council of Ministers 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.
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.

https://www.today.ng/news/nigeria/95661/alcohol-consumers-smokers-pay-federal-govt-raises-excise-duty?

Science Students in trouble.

And the Arts Students(Drinkers only)too.

Bang DE DE deng!!!

This country is something else..

We would soon start paying for the air we breathe if we Don't kick out this clueless government.

Well it serves all the zombies and ex -zombies right, you paupers will soon only afford to smoke firewood smoke

How can a woman be minister of fiance? Women don't know the value of money and things. Biko/ejo even Eve didn't know the value of the Apple that's why we are paying the price in Nigeria as Nigerians

This tax will only lead to the proliferation of substandard alcohol and poorly home brewed alcohol which will only lead to further loss of lives and blindness from substandard alcohol poisoning

The worse part is that the billions from the increase will see the northern Sharia states receiving more than the southern states that consume alcohol.

Where is the fairness in this?

Pro active move!

Come buy my electronic cigarettes.. Just 5k and use till Jesus comes. Na just liquid you go dy buy 1k refill ham.

Table showing the increase progression

I thought she was talking about corrupt politicians returning their loot or be hang..so n.a. just drinkers and smokers I waste time hear they read...rubbish

The injustice in this country is just too much,when I drink turbo king now,person wey dey sokoto and katsina too go receive from my money

FarahAideed:
This tax will only lead to the proliferation of substandard alcohol and poorly home brewed alcohol which will only lead to further loss of lives and blindness from substandard alcohol poisoning

And again will increase the intake of Igbo(indian herm) due to high cost of cigarette

Northern states under the rule of sharia should not be giving allocation from excise duty collected from alcohol making companies. It is injustice for you to ban and criminalise the sale and drinkkng of alcohol in your states only for you to turn back and get allocations collected from the sale of the products in other states.
God helping me to get into the senate, this is one of the things that we must correct. Nigerians should tell themselves the truth and stop being blind to fact. A lot of things must change if we are to move forward in this country.

The criminal zoo Jihadist govt of Nigeria led by terrorist buhari

Nigeria is a State sponsor of terror

You will steal beer money from the south and give to your Sharia desert States in the North

You are foolish and wicked for comparing this cesspit of evil Nigeria to other countries to justify raising beer prices

Nigeria is a zoo

Divide this zoo now

This thread might be hot later. The tax sharing thing is true. You shouldn't benefit from activities you ban in your jurisdiction. Sharia states shouldn't benefit from "sin". It's akin to being a devote Muslim and investing in gambling.

Front Page: lalasticlala

Whaaaat?!!

damn... here in kenya, average cost of a bottle of beer is 200ksh, 1kenya shilling is like 3.7nigerian naira...

a bottle is like 750naira


its going to increase to volume of locally produced alcohol.... and definitely more death will result from consumption of locally brewed alcohol....




what the government need to do is regulate the license fees... those already selling at high price should get high license fees while those selling at normal pump price should get lower pump price....


they should also force beer parlours to open from 5pm

Buhari kukuma kill Nigerians !!!the only source of happiness in this country :oo oo o

Una dey mad

That's nice

What of those holy region that takes tramadol ?

Won't their substance be taxed?

FarahAideed:
This tax will only lead to the proliferation of substandard alcohol and poorly home brewed alcohol which will only lead to further loss of lives and blindness from substandard alcohol poisoning

It is for the best

Well, For those of us who dont smoke cigarettes or drink liquor, abeg this is not our bizness lets leave the thread for the smokers and drunkards....

Yes o!!!
Looking for where to bring revenue to fund the largesse collected on a monthly basis by various individuals who exploit "privileges" in their offices to loot funds.

Revenue from these would be shared to politicians in Sharia Autonomous Republic of Nigeria

One Nigeria indeed

Lol






Science students in trouble

Since Buhari said he doesn't drink or smoke


But he loves following women upandan


I started expecting this from him

Olodo presidency

.

this is bad for sellers, may God show this people on time o

E no concern weed consumers

FarahAideed:
This tax will only lead to the proliferation of substandard alcohol and poorly home brewed alcohol which will only lead to further loss of lives and blindness from substandard alcohol poisoning

and so?

All this government is good at is looking for ways to mildly milk the citizens with absolutely nothing to show for it. i can boldly say abacha's government is better than this present buhari brouhaha.