In March this year, the president approved new excise duty rates on cigarettes and alcohol as proposed by the Ministry of Finance.
The implementation of that new rates will start on Monday, June 4, 2018.
On Sunday, the Minister of Finance, Kemi Adeosun, disclosed this in Abuja, while explaining that the new excise duty rates were spread over a three-year period from 2018 to 2020 in order to moderate the impact on pricing.
As at the announcement of the new rates in March, the minister said President Buhari granted a grace period of 90 days to all manufacturers before the commencement of the new excise duty regime.
That grace period ended on Sunday.
Adeosun recalled that the new excise duty regime followed all-inclusive engagements by the Tariff Technical Committee of the Federal Ministry of Finance with key industry partners.
According to her, the upward review of the excise duty rates for alcoholic beverages and tobacco achieves two objectives:
Rising the government’s fiscal revenues and reducing the health hazards associated with tobacco-related diseases and alcohol abuse.
Under the new excise duty rates for tobacco, each stick of cigarette would attract a N1 specific rate (N20 per pack of 20 sticks) in 2018; a N2 specific rate per stick (N40 per pack of 20 sticks) in 2019 and a N2.90k specific rate per stick (N58 per pack of 20 sticks) in 2020.