The Federal Government has approved an amendment to the excise duty rates for alcoholic beverages and tobacco which will take effect from Monday, 4th June, 2018.
The Manufacturers were giving a grace period of 90 days (three months) before the commencement of the new excise duty regime.
The announcement was made known this Sunday in Abuja, by the Minister of Finance, Mrs. Kemi Adeosun, who 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 revealed 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 Adeosun, the reason for the upward review of the excise duty rates for alcoholic beverages and tobacco was to achieve dual benefit of increasing Government’s fiscal revenues and reducing the health hazards associated with tobacco-related diseases and alcohol abuse. The Minister went further to say that the new excise duty regimes are in line with the Economic Community of West African States (ECOWAS) directive on the harmonization of member-states’ legislation on excise duties.
Note: There is, however, no increase in excise duty of other locally excisable products.
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