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President Buhari Approves Change in Excise Duty Rates for Alcoholic Beverages & Tobacco

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  • President Buhari Approves Change in Excise Duty Rates for Alcoholic Beverages & Tobacco

    President Buhari Approves Change in Excise Duty Rates for Alcoholic Beverages & Tobacco

    Muhammadu Buhari has approved a change in excise duty rates for alcoholic beverages and tobacco with effect from Monday, June 4, 2018, the Minister of Finance, Mrs. Kemi Adeosun has said.

    In a statement in Abuja on Sunday, Adeosun said the President has granted a grace period of 90 days to manufacturers of the products before the start of the new duty regime.

    This new excise duty rates, which followed all-inclusive stakeholder engagements by the Tariff Technical Committee of the Federal Ministry of Finance with key industry stakeholders, would spread over a three-year period from 2018 to 2020 in order to moderate the impact on prices of the products.

    The minister said the upward review of the excise duty rates for alcoholic beverages and tobacco was to increase the government’s fiscal revenues and to reduce the health hazards associated with tobacco-related diseases and alcohol abuse.

    Adeosun said the new duty rate on tobacco was a mix of the existing ad-valorem base rate and specific rate while the ad-valorem rate was replaced with a specific rate for alcoholic beverages.

    “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 for determining the ad-valorem rate and prevent revenue leakages.

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

    She said that under the newly approved excise duty rates for tobacco in addition to the 20 per cent ad-valorem rate, each stick of cigarette will attract one naira specific rate per stick, that is N20 per pack of 20 sticks in 2018.

    She said that tobacco would in 2019 attract duties of two naira specific rate per stick, that is N40 per pack of 20 sticks in 2019 and N2.90 kobo specific rate per stick, that is N58 per pack of 20 sticks in 2020.


    Adeosun elucidated that Nigeria’s cumulative specific excise duty rate for tobacco was 23.2 per cent of the price of the most sold brand as against 38.14 per cent in Algeria, 36.52 per cent in South Africa and 30 per cent in Gambia.

  • #2
    good move...

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