FG Increases Tax On Cigarette, Shisha To 30% - Matrix Live Ng
FG Increases Tax On Cigarette, Shisha To 30%
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FG Increases Tax On Cigarette, Shisha To 30%

Tax

The federal government has increased the tax on tobacco products including shisha and cigarettes from 20 percent to 30 percent

Minister of State for Health, Olorunnimbe Mamora, disclosed this on Tuesday while delivering his remark at the launch of the Tobacco Control Data Initiative Dashboard in Abuja.

 

A 2012 Global Adult Tobacco Survey (GATS), states that 5.6 per cent (4.5 million) Nigerians of 15 years and older currently use tobacco products.

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Mamora said about 3.9 per cent (3.1 million) of this figure are smokers in Nigeria today.

“With effect from 1st June 2022, the federal government of Nigeria has commenced implementation of a new three-year tobacco tax regime, which will end in 2024,” Mamora said. “This new regime increased the Ad-Valorem tax rate from 20% to 30%.”

Mamora also stated that as part of its pro-health tax, the price for a pack of 20 cigarettes will be increased from N58 to N8 while shisha will be taxed ₦3,000 per litre.

“In addition to the 30% ad-valorem, a specific excise rate has been increased from ₦58 to ₦84 per pack of 20 sticks of cigarette, and this will further be increased to ₦94 per pack in 2023; and then ₦104 per pack in 2024,” Mamora said.

“Also, Shisha is now taxed at the rate of ₦3,000 per litre and ₦1,000 per kilogram and this will be increased yearly by ₦500,”

“This pro-health tax is an effective public health control measure against behavioural risk factors.”

The minister said the result also found high and significant exposure to second-hand smoke (SHS) during visits to public places with the prevalence of 82 per cent in bars or nightclubs, 36.3 per cent in coffee shops, 22.3 per cent in universities and 29.3 per cent in restaurants.

“The Tobacco Atlas 6th edition estimates that more than 26,800 annual deaths occur from tobacco-related diseases in Nigeria,” Mamora said.

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