Business

Hike in prices of alcohol, cigarettes begin on Monday

Published

8 years ago

June 5, 2018

Nigerians will start paying more for alcoholic beverages and tobacco from Monday, June 4, National Daily has gathered.

Recall that President Muhammadu had approved the amendment to the excise duty rates in March after Kemi Adeosun, Minister of Finance, had written to the president seeking approval for the excise review.

Adeosun had said the reviews would be from 2018 to 2020 and was to raise the government’s fiscal revenues.

She also said it would reduce the health hazards associated with tobacco-related diseases and alcohol abuse.

A statement from her ministry had said: “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.”

The minister had said under the new rates for tobacco, in addition to the 20 percent ad-valorem rate, each stick of cigarette will attract one naira specific rate.

She said by 2019, tobacco will attract two naira specific rate per stick while it will attract N2.90 kobo specific rate per stick by 2.

Under the review, beer and stout will attract 0.30k per centilitre (Cl) in 2018 and 0.35k 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.