Minister of Finance Kemi Adeosun has announced an increase in the excise duty rates for alcoholic beverages and tobacco with effect from June 4, 2018. This was contained in a press statement issued on Sunday.
Manufacturers of these products were also given a three month grace period. The increase in taxes will be phased from now till 2020. An excise duty tax is a tax charged on goods produced within a country.
The new taxes
- A stick cigarette will attract a ₦1 specific rate per stick (₦20 per pack of 20 sticks) in 2018, a ₦2 specific rate per stick (₦40 per pack of 20 sticks) in 2019 and ₦2.90k specific rate per stick (₦58 per pack of 20 sticks) in 2020.
- The current ad valorem tax of 20% on cigarettes will, however, remain in place.
- Beer & Stout would attract ₦0.30 per centilitre (Cl) in 2018 and ₦0.35 per Cl each in 2019 and 2020.
- Wines would attract ₦1.25 per Cl in 2018 and ₦1.50 per Cl each in 2019 and 2020, while ₦1.50 per Cl was approved for Spirits in 2018, ₦1.75 per Cl in 2019 and ₦2.00 per Cl in 2020.
- The ad valorem tax on alcoholic beverages has however been removed.