Senate considers removing tariff on alcohol, tobacco

0
333
Reading Time: < 1 minute

The Senate recently considered removing the special excise tariff imposed on alcohol and tobacco companies

The demand was sequel to the adoption of the report of the Senate Committee on Finance.

The committee considered a motion, “The urgent need to review the excise tariff increment in order to save local distillers of beverages from looming extinction” – which was moved by Ben Uwajumogu (APC, Imo North) in May.

He had stated that the current excise duty paid by the locally produced beverages sector stands at 20 per cent across board. But under the approved excise duty tariff hike by the federal government, it is fixed at 67 per cent; a more than 300 per cent increase.

The federal government had in March, rolled out a proposal for the upward review of excise duty on alcoholic beverages and tobacco products.

The approval, according to the former Minister of Finance, Kemi Adeosun, was given by President Muhammadu Buhari, and would take effect from June 4, 2018.

Mrs Adeosun in a statement said the president also granted a grace period of 90 days to all local manufacturers before the commencement of the new excise duty regime.

Leave a Reply

%d bloggers like this: