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Buhari approves new excise duty rates for alcohol, beverages, tobacco

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President Muhammadu Buhari has approved an amendment to the excise duty rates for alcoholic beverages and tobacco with effect from Monday, 4th June, 2018.

The President has also granted 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.

Minister of Finance, Mrs. Kemi Adeosun, who made this known 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.

She said, “The Tariff Technical Committee (TCC) 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 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 Trade and Investment and it adopted the recommendations of the TTC.

“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 disclosed that the new excise duty rate on tobacco was now a combination of the existing ad-valorem base rate and specific rate while the ad-valorem rate was replaced with a specific rate for alcoholic beverages.

The Minister added, “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 (UCA) 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.”

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 a N1 specific rate per stick (N20 per pack of 20 sticks) in 2018, N2 specific rate per stick (N40 per pack of 20 sticks) in 2019 and N2.90k specific rate per stick (N58 per pack of 20 sticks) in 2020.

The Minister explained 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.

The new specific excise duty rate for alcoholic beverages cuts across Beer & Stout, Wines and Spirits for the three years 2018 to 2020.

Under the new regime, Beer & Stout would attract N0.30k per centiliter (Cl) in 2018 and N0.35k per Cl each in 2019 and 2020.

Wines would attract N1.25k per Cl in 2018 and N1.50k per Cl each in 2019 and 2020, while N1.50k per Cl was approved for Spirits in 2018, N1.75k per Cl in 2019 and N2.00k per Cl in 2020.

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.

It would be recalled that the ECOWAS Council of Ministers had at its 62nd and 79th Ordinary Sessions in Abuja in May 2009 and December 2017, respectively, issued directives on the harmonisation of the ECOWAS Member States’ Legislations on Excise Duties.

The directives seek to harmonise member-states’ legislations on excise duties of non-oil products and also stipulate the scope of application, rate of taxation, taxable event and amount.

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FG Declares Festive Public Holidays

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The Federal Government has declared Wednesday, December 25, and Thursday, December 26, 2024, as public holidays to mark Christmas and Boxing Day, respectively. Additionally, Wednesday, January 1, 2025, has been declared a public holiday to celebrate the New Year.

This announcement was made by the Minister of Interior, Dr. Olubunmi Tunji-Ojo, in a statement signed by the Permanent Secretary, Dr. Magdalene Ajani. The minister extended warm greetings to all Nigerians, urging them to embrace the festive period as an opportunity to reflect on the values of love, peace, and unity that the season represents.

Tunji-Ojo emphasized the significance of the season in fostering harmony and strengthening family and community bonds.

“The Christmas season is a good moment for both spiritual reflection and national renewal. As we celebrate the birth of Jesus, the Prince of Peace, let us demonstrate kindness and extend goodwill to one another, irrespective of our differences,” he stated.

He further encouraged citizens to remain committed to peace, unity, and progress for the development of the nation, stressing the Federal Government’s dedication to ensuring security and prosperity across the country.

While wishing Nigerians a Merry Christmas and a prosperous New Year, the minister expressed confidence in the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration.

He assured citizens that the coming year would usher in a stronger and more prosperous economy that would set Nigeria on a global pedestal.

The minister concluded by calling on Nigerians to celebrate responsibly, maintaining peace and unity throughout the festive season.

 

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IGP Steps In: FCID to Investigate Death of Man Detained Over N220,000 Debt

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IGP Kayode Egbetokun during his visit to the family of late Jimoh Abdulquadri in Kwara

 

The Kwara State Police Command has confirmed the death of a 35-year-old man, Jimoh Abdulquadri, who passed away in police custody in the early hours of Friday.

 

Abdulquadri, who was arrested on December 19, 2024, reportedly died under controversial circumstances, with his family accusing police operatives of subjecting him to brutal treatment during his detention. Reports indicate that the deceased had been detained over an alleged debt of N220,000 owed to an individual identified as Peter.

 

In response to the incident, the Inspector-General of Police (IGP), Kayode Adeolu Egbetokun, has directed the Force Criminal Investigations Department (FCID) to immediately take over the case. A statement issued by the Force Public Relations Officer, ACP Olumuyiwa Adejobi, revealed that the IGP also visited Kwara State to meet with the bereaved family.

 

During the visit, the IGP was received by the Balogun Fulani of Ilorin, Alhaji Sadiq Atiku Fulani, who represented the family. The IGP expressed his condolences and assured them of a thorough investigation.

 

“The IGP expressed his profound condolences and assured the family that no stone would be left unturned in uncovering the circumstances that led to the tragic incident. He has ordered the FCID to handle the case with utmost diligence and ensure a conclusive and impartial investigation,” the statement read.

 

The IGP reiterated the Nigeria Police Force’s commitment to upholding accountability, professionalism, and respect for human rights. He further called on all stakeholders to remain calm and allow the due process of law to take its course.

 

 

 

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FG Lifts Five-Year Ban on Mining in Zamfara, Eyes Economic Boost

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The Federal Government has officially lifted the five-year ban on mining activities in Zamfara State, citing improved security and the potential for economic growth in the mineral-rich region.

The announcement was made on Sunday by the Minister of Solid Minerals Development, Dele Alake, through his representative, Segun Tomori, during a press briefing in Abuja.

“The Federal Government has lifted the ban on mining exploration activities in Zamfara State, citing significant improvements in the security situation across the state,” the minister said in a statement.

Security Gains and Economic Promise

The ban, imposed in 2019 due to escalating insecurity and illegal mining, was described by Alake as a necessary but temporary measure to protect lives and resources. However, he noted that the ban inadvertently created a vacuum exploited by illegal miners, leading to resource plundering.

Alake praised recent security advancements under the Tinubu administration, highlighting the neutralization of notorious bandit commanders and other strategic wins, including the capture of Halilu Sububu, one of the state’s most wanted criminals.

“The existential threat to lives and properties that led to the 2019 ban has abated. The security operatives’ giant strides have led to a notable reduction in the level of insecurity,” Alake said.

He added that with the restoration of mining activities, Zamfara’s mineral wealth—ranging from gold and lithium to copper—could now be harnessed under strict regulation to contribute significantly to national revenue.

Boosting Regulation and Combating Illegal Mining

The minister emphasized that lifting the ban would pave the way for better regulation and monitoring of mining activities. This, he said, would enable authorities to tackle illegal mining more effectively and ensure Nigeria benefits fully from Zamfara’s mineral resources.

“By reopening this sector, we are prioritizing not only revenue generation but also intelligence gathering to curb illegal mining,” he said.

Addressing Controversies

Alake also addressed concerns surrounding Nigeria’s recent Memorandum of Understanding (MOU) with France, which had sparked controversy. He clarified that the agreement focused solely on capacity building and technical support for the mining sector.

“The high point of the MOU is on training and capacity building for our mining professionals. Similar agreements have been signed with Germany and Australia. Misinformation about ceding control over our mineral resources is uncalled for,” Alake said.

Press as Partners in Progress

Commending the media for their role in promoting reforms in the mining sector, Alake urged continued collaboration to drive transparency and attract foreign investments.

 

 

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