FG to impose higher taxes on alcohol and cigarette

-Federal government moves to curtail the unbridled consumption of alcohol and tobacco in the country.

-This is is in compliance with the World Health Organization recommendations and the need to build government revenue.

Government working to excise duty on tobacco and alcohol.

Minister of finance, Kemi Adeosun, has revealed plans by the federal government to increase the tax paid on tobacco and alcohol.

Speaking at the ECOWAS financial council of ministers in Abuja on Friday, where she was represented by Mahmoud Dutse, permanent secretary in the ministry of finance, Adeosun submitted that the idea is to raise revenue and decrease tobacco consumption.

“Federal government identified with the ECOWAS position on excise tax on some products,” Adeosun said.

“One of the techniques used by governments all over the world is to tax products that are either consumed particularly when you want to do progressive taxation, or products that are hazardous to health and increase health spending.

“It is a twin objective; to raise revenue and decrease tobacco consumption. In this regard, the use of modern techniques and tools of production controls such as tax stamps or special package markings in the context of the track-and-trace system, which is a global best practice, are being considered.

“The harmonisation of laws establishing a system for tracing, tracking and tax verification of manufactured or imported tobacco products in ECOWAS member states is a welcome development for Nigeria.”

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Also speaking, ECOWAS vice president, Edward Singhatey, stated that the regional body would increase excise duties on unhealthy products such as tobacco to increase revenue and discourage the consumption of such products in the sub-region.

Singhatey submitted that the policy is in compliance with the World Health Organisation framework convention on tobacco control and the protocol to eliminate illicit trade in tobacco products.

An excise duty is a type of tax charged on goods produced within the country, as opposed to customs duties, charged on goods from outside the country.