Buhari approve increase in the price of Cigarette, alcohol

Buhari approve increase in the price of Cigarette, alcohol

Ebun Francis || Prices of alcoholic beverages and tobacco products will increase with effect from June 4, 2018.

This followed the approval of an amendment to the excise duty rates by President Muhammadu Buhari.

In a statement on Sunday, the ministry of finance said the new excise duty rates will be spread over a period of three years to moderate the impact on the prices of the products.

The statement read, “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 statement further said that the new regime for tobacco products will be a combination of the existing ad-valorem base rate and specific rate.

“For alcoholic beverages, the current ad-valorem rate will be replaced with specific rates and spread over three years to moderate the impact on prices.”

“This will curb the discretion in the unit cost analysis (UCA) for determining the ad-valorem rate and prevent revenue leakages.

“For tobacco, the government will maintain the current ad-valorem rate of 20 percent and introduce additional specific rates with the implementation to be spread over a three-year period to also reasonably reduce the impact on prices.

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