FG Increases Tax On Tobacco Products To 30%

Posted by Nwa Diokpa Latest Headlines, News Across Nigeria Wednesday, June 29th, 2022

(AFRICAN EXAMINER) – The Federal Government has increased tax on tobacco products and shisha by 30 per cent.

The minister of state for Health, Dr. Olorunnimbe Mamora, announced this during a ministerial press briefing in commemoration of 2022 World No Tobacco Day, theme:

“Tobacco: a threat to our environment”, and the launching of Nigeria’s TCDI dashboard, in Abuja.

Mamora said, “This new regime increased the Ad-Valorem tax rate from 20 per cent to 30 per cent. In addition to the 30 per cent ad-valorem, a specific excise rate has been increased from N58 to N84 per pack of 20 sticks of cigarette, and this will further be increased to N94 per pack in 2023; and then N104 per pack in 2024.

Also, Shisha is now taxed at the rate of N3,000 per litre and N1,000 per kilogramme and this will be increased yearly by N500. This pro health tax is an effective public health control measure against behavioural risk factors as it has the capacity to reduce demand and consumption of tobacco products.”

Mamora stated that the new rates will prompt higher prices of tobacco as users would switch, expanding their resources to healthy alternatives.

“It will also protect even babies, children and women as they are the topmost victims of second-hand smoke. I also urge citizens to report infringements on provisions of the National Tobacco Control Laws and Regulations to the Law Enforcement Agencies,” he said.