The Federal Government has approved an amendment to the excise duty rates for alcoholic beverages and tobacco products with effect from Monday, 4th June, 2018.
The approval, according to the Minister of Finance, Mrs. Kemi Adeosun, was given by President Muhammadu Buhari, and would give a grace period of 90 days (three months) 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.
Adeosun, in a statement issued on Sunday 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.
The Minister added that the new excise duty regimes are in line with the Economic Community of West African States (ECOWAS) directive on the harmonisation of member-states’ legislations on excise duties.