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Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review - Business - Nairaland

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Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by Islie: 7:23am On Feb 08, 2018
• Says economy is attracting huge interest from foreign investors


Ndubuisi Francis in Abuja, with agency report


The Minister of Finance, Mrs. Kemi Adeosun, is proposing increased tariff for cigarette and alcohol.

Her proposal is in line with the implementation of the ECOWAS Common External Tariff (CET), one of the instruments of harmonising member states to strengthen its common market agreed upon on October 25, 2014.

In a memo sent to President Muhammadu Buhari and seen by TheCable, Adeosun suggested that a two-part tariff be approved for tobacco products.
A two-part imposes two types of import levies on the same item.

Adeosun suggested a 20 per cent “ad valorem” tariff and a specific tariff of N1 per stick be placed on cigarettes and tobacco products.

She also suggested that a specific tariff of 35 kobo per CL be placed on beer and stout, N1.50k per CL on wines, and N2 on spirits and other alcoholic beverages.
Ad valorem tariff is levied as a fixed percentage of the value of a commodity.

According to the minister, this was a recommendation made by the Tariff Technical Committee (TTC), which is chaired by the ministry of finance with members from ministries of industry, agriculture, Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS), Office of the Secretary to the Government and Manufacturers Association of Nigeria (MAN).

“Further to the request, the chief of staff to Mr President requested for my views on the matter. As a result of this, the TTC deliberated on the subject and recommended for an upward review of excise rate on tobacco and alcohol, taking into consideration their health implications and revenue potential,” she wrote.

“In addition, it also recommended the introduction of a specific rate of excise on alcohol including beers and a mixture of ad valorem and specific rate excise structure on tobacco products in ECOWAS member states.

“In line with the recommendations of the TTC, I wrote and requested your excellency’s consideration and approval for the proposed revised rates of excise on alcohol and tobacco, vide letters: FMF/OHMF/TA/1/2017, dated October 30, 2017 and FMF/PHMF/ALCOHOL/1/2017, dated November 8, 2017.”

In November, Adeosun told the ECOWAS financial council of ministers that the federal government was working on policies to increase taxes on tobacco and alcohol.

In 2017, the World Health Organisation (WHO) called for increased taxes on tobacco products to discourage its use.
Nigerians smoke about 20 billion sticks of cigarette yearly, according to Isaac Adewole, Minister of Health.

Nigeria is also said to be the highest alcohol-drinking country in the world.
Meanwhile, Adeosun yesterday also declared that the Nigerian economy is increasingly attracting huge interest from foreign investors, noting that the momentum was occasioned by huge spending on infrastructure by the government.

She noted that such interest would translate into massive investments, culminating in the creation of jobs and a reduction in the poverty level in the country.

The minister spoke at the headquarters of the ministry in Abuja while playing host to a delegation of about 20 investors drawn from various countries and continents who are in Nigeria to discuss investment opportunities.

She said the huge investment which the federal government is making on infrastructure projects across the country was attracting fresh investments into the country.

The minister told the delegation led by a one-time finance minister. Dr Shamsudeen Usman, that in 2017 alone, the sum of N1.2 trillion was released for capital projects.

According to her, one of the cardinal focus of the current was to address the infrastructure deficit in the country through targeted spendings at projects that would unlock the economic potential of the country.

The minister noted that it was an auspicious time for investors to be in the country.

In her words, “It’s a great time for investors to be in Nigeria. For us, it’s a more better time now than last year because finally we think that we are beginning to address through deliberate policies, some of the most stubborn problems that have held back Nigeria’s growth.

“We have gone through a very difficult adjustments but we are seeing that the macroeconomic fundamentals are much more positive and the outlook is that they will remain positive.

“The goodness is that the narrative that we have been adopting around the reason for our reliance on oil we have actually beginning to take steps in terms of reducing our benchmark price by keeping it low, allowing us to rebuild some of our buffers.

“Our budget is predicated on lower oil price, and for me, we are discussing on revenue because we think that is the missing part of the Nigeria jig-saw.

“We always want to increase our tax-to-GDP ratio from six per cent to an initial target of ten and the long term goal is to be around the 15 to 20 per cent range,” she said.

The economy, she added has started seeing the impact of the expanded budget of the federal government with massive infrastructure investments in power, roads, and rails.

“Our commitments in solving the infrastructure challenges in Nigeria is firm because we think that is what would unlock growth in agriculture, and solid minerals and make us move away from our over reliance on oil,” she stated.


https://www.thisdaylive.com/index.php/2018/02/08/cigarette-alcohol-prices-to-rise-as-adeosun-proposes-tariff-review/


lalasticlala

2 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by Nobody: 7:40am On Feb 08, 2018
Okay
Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by Lipscomb(m): 7:47am On Feb 08, 2018
cheesy hope this new proposal will not increase the sale of alcoholic.
Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by fulaniHERDSman(m): 7:58am On Feb 08, 2018
pawpaw leaf smoking loading ...

21 Likes 2 Shares

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by AishaBuhari: 11:13am On Feb 08, 2018
Watch how some people will resort to smoking dry plantain leaves grin

12 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by tetralogyfallot(m): 11:14am On Feb 08, 2018
A very good and effective way to reduce their consumption. The only loophole with this method is that it will make smugglers richer.

27 Likes 2 Shares

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by soberdrunk(m): 11:14am On Feb 08, 2018
We supported the APC government and despite all their shortcomings we have still given our support but if they 'play this rough play' WE WILL NOT TAKE IT LIGHTLY!!!! angry

54 Likes 3 Shares

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by modelmike7(m): 11:14am On Feb 08, 2018
Maybe it will help some people to STOP SMOKING!

5 Likes 2 Shares

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by AishaBuhari: 11:15am On Feb 08, 2018
modelmike7:
Maybe it will help some people to STOP SMOKING!
Story! Story!!!!!!!!

15 Likes 1 Share

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by mrvitalis(m): 11:16am On Feb 08, 2018
Ok
Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by Tinocosta(m): 11:16am On Feb 08, 2018
At least e no affect IGBO price.

31 Likes 2 Shares

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by modelmike7(m): 11:17am On Feb 08, 2018
AishaBuhari:
Story! Story!!!!!!!!
You can continue then Madam Aisha!
Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by tetralogyfallot(m): 11:17am On Feb 08, 2018
SMOKING KILLS
Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by ewebiodun: 11:18am On Feb 08, 2018
Make dem noh add money for my guineas stout o, if dem noh want problem.. Ah ah wetin,that's enough to start campaigning against Buhari

N400 a Bootle of stout is bad enough and we still dey drink for did recession.... Make dem stop rough play o....nuffin to enjoy for this naija again

Buhari self..

10 Likes 1 Share

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by Bonaventura(m): 11:18am On Feb 08, 2018
E no mean. Erujeje and Sk to the rescue.

8 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by spartan50(m): 11:19am On Feb 08, 2018
The only thing that makes Nigerians happy you to increase it.. Are you mad?

46 Likes 1 Share

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by Dosinspector(m): 11:19am On Feb 08, 2018
don't go near beer oooo ,what about tariff on gworo and kunu?

7 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by Flexherbal(m): 11:19am On Feb 08, 2018
AishaBuhari:
Watch how some people will resort to smoking try plantain leaves grin
Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by Desyner: 11:19am On Feb 08, 2018
What of condom and expensive handsets. Anything that isn't a pressing need but a want (status and leisure) should attract heavy tax.

1 Like

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by playboy19(m): 11:19am On Feb 08, 2018
tetralogyfallot:
A very good and effective way to reduce their consumption. The only loophole with this method is that it will make smugglers richer.

Sorry to bust your bubble sir, but any economist will understand that these are inelastic products. Price change and tax increments don't affect their consumption or sales because they are addictive products people will always buy them regardless.

This tax increment method has been tried in every country of the world and it hasn't worked once. As a matter of fact, the cigarette and alcohol companies will transfer the new tax payment to the customers and they will happily pay up. So sales and consumptions won't be affected. Though, I must say that It is a good way for the government to generate additional revenue .

14 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by FreddyKruger: 11:20am On Feb 08, 2018
Every commodity is increasing in the dullards regime and the same incompetent idiotic president still has the guts to seek second term. Such a shameless man.

9 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by hotboz: 11:20am On Feb 08, 2018
Science Students won't like this grin

3 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by Stallion93(m): 11:20am On Feb 08, 2018
Islie:






[b]• Says economy is attracting huge interest from foreign investors





https://www.thisdaylive.com/index.php/2018/02/08/cigarette-alcohol-prices-to-rise-as-adeosun-proposes-tariff-review/





Una still no want people to smoke and drink away the Hardship una cause for them. This woman and tariff hike sef, Dem no dey see minimum wage? Dem no dey see USD/NAIRA rate? God dey vex o!

8 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by DonCandido: 11:20am On Feb 08, 2018
When are they going to increase the tariff on bleaching cream, Brazilian hair and jewellery?

3 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by sunsewa16: 11:20am On Feb 08, 2018
the little happiness we use to console ourselves after much buhari suffer,na im dey won tamper.

3 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by tayooluwole: 11:20am On Feb 08, 2018
They are only trying to increase the price of my only source of joy and inspiration...God no go give them do
Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by Stallion93(m): 11:21am On Feb 08, 2018
Tinocosta:
At least e no affect IGBO price.
grin grin

3 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by AnodaIT(m): 11:21am On Feb 08, 2018
They won't work on creating a suitable environment for more beer and cigarettes industries, they want to tax the existing ones out of production

5 Likes 1 Share

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by Nobody: 11:22am On Feb 08, 2018
These bastards want to make it difficult for an average man to afford his only source of succour & escape from Nigerian reality.

I’m thinking these APC’s harsh policies is them trying to push us to protest, seize the system and effect positive changes. If not then how does one explain the periodic hardship slapped into our faces on the regular since 2015?

Maybe this one go make mans eye clear.


Edit: thinking it over again, out of everything they could shoot its price up it had to be alcohol & cigarette. Would I be right to think it has Islam/Sharia undertone knowing how the Northerners who control Adeosun’s policies (like every other federal public office) feel about alcohol and cigarettes except gum, codeine, pills?

7 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by delikay4luv: 11:22am On Feb 08, 2018
We can't even drink and smoke in peace again.
They want to spoil another source of inspiration.

2 Likes

Re: Cigarette, Alcohol Prices To Rise As Adeosun Proposes Tariff Review by nonut: 11:23am On Feb 08, 2018
Apc seeking for better ways to make Nigerians miserable.

3 Likes

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