FG Increases Tobacco And Alcohol Prices

By Ikenga Chronicles June 4, 2018

FG Increases Tobacco And Alcohol Prices

The Minister of Finance, Mrs. Kemi Adeosun, disclosed in Abuja on Sunday that the prices of alcohol and tobacco will now be increased as approved by President Muhammadu Buhari.

She explained 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.

Adeosun stated that all stakeholders were engaged by the Tariff Technical Committee of the Federal Ministry of Finance before the decision was made.

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She said, “The Tariff Technical Committee 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’s 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 Industry, Trade and Investment, and it adopted the recommendations of the TTC.

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“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.”

Following the President’s approval, Adeosun said that the new excise duty rate on tobacco was a combination of the existing ad-valorem -base rate and specific rates.