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Prices of alcoholic drinks, tobacco to increase from Monday

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Prices of alcoholic drinks, tobacco to increase from Monday

The new excise duty for alcoholic beverages and tobacco will take effect from Monday, June 4, 2018, indicating an increase in the prices of the products from the review date.

The Minister of Finance, Kemi Adeosun, had in March written to President Muhammadu Buhari seeking for his approval on the new excise duty review.

Thereafter, the Minister announced that the President had granted a grace period of 90 days (three months) to manufacturers before the commencement of the new excise duty regime.

Adeosun had said the upward review of the rates would spread over three-year period from 2018 to 2020, adding that it was to raise government’s fiscal revenues and reduce the health hazards associated with tobacco-related diseases and alcohol abuse.

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“The Tariff Technical Committee (TTC) 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 the excise duty reserve on alcoholic beverages and tobacco,” she said.

The Minister had said 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 N1, N2 and N2.90 specific rate per stick in 2018, 2019 and 2020, respectively.

According to Adeosun, under the new excise duty regime, Beer and Stout would attract 30k per centiliter (Cl) in 2018 and 35k per Cl each in 2019 and 2020.

Wines would attract N1.25 per Cl in 2018 and N1.50 per Cl each in 2019 and 2020, while N1.50, N1.75 and N2 per Cl was approved for Spirits in 2018, 2019 and 2020, respectively.

 

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