Nigeria: Alcohol, Tobacco Prices to Rise as FG Increases Excise Duty for the Products
- March 12, 2018
Prices of alcoholic beverages and tobacco will soon go up as the federal government announced new excise duty for the products with effect from Monday, June 4, 2018.
The new rates approved by President Muhammadu Buhari have also granted a grace period of 90 days to all manufacturers before the commencement of the new excise duty regime.
There is however no increase in excise duty of other locally excisable products. Minister of Finance, Mrs. Kemi Adeosun, who made this known in Abuja, stated that 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.
The Minister disclosed that the new excise duty regimes 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 achieve a dual benefit of raising the Government’s fiscal revenues and reducing the health hazards associated with tobacco-related diseases and alcohol abuse.