President Muhammadu Buhari on Sunday approved an amendment to the excise duty rates for alcoholic beverages and tobacco with effect from Monday, June 4. Under the new rates, 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.
But Buhari, according to the Minister of Finance, Kemi Adeosun, granted a grace period of 90 days (three months) to all manufacturers before the implementation of the new excise duty rates. According to the minister, 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.
She added that 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 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 minister said.
“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.”
Tags
Business