The Federal Government will today begin the implementation of the new excise duties for alcohol and tobacco.
President Muhammadu Buhari had in March assented to an increase in excise duties for tobacco, beer, wine, and spirits imported permitting a grace period of 90 days for implementation.
This follows after the Minister of Finance, Kemi Adeosun wrote to President Buhari to seek approval of the excise review.
The Minister stated that Adeosun noted that the reviews would be from 2018 to 2020 in order to reduce an expected negative impact on the sector.
According to her, the health hazards associated with tobacco-related diseases and alcohol abuse will be reduced.
“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.
“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 upward review of the rates was carried out in line with new ECOWAS standards and is expected to boost the government’s revenue and discourage abuse of the items.