Tobacco: FG Raises Tax On Products To 30%
The federal government is implementing a new three-year tobacco tax regime starting on the 1st of June 2022 through 2024 in order to reduce the demand and consumption of tobacco products in the country.
Yesterday, Dr. Olorunnimbe Mamora, the minister of state for Health, had stated this during a ministerial press briefing for the commemoration of 2022 World No Tobacco Day, with the theme: “Tobacco: a threat to our environment”, and the launch of Nigeria’s TCDI dashboard, in Abuja.
“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 ₦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.
“Also, Shisha is now taxed at the rate of ₦3,000 per litre and ₦1,000 per kilogramme and this will be increased yearly by ₦500.12. 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.”
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Dr. Mamora stated that the development had also prompted tobacco users to switch expending their resources on tobacco products to healthier alternatives such as education, health, nutrition, and others.
He had also stated that the ministry had commenced the screening and issuance of operational licenses to qualified major tobacco businesses in the country with the aim of profiling and monitoring tobacco industry activities nationwide, adding that the tobacco industry must ensure that the unit packages of all their tobacco products have both the approved text and pictorial/graphic health warning message so that the public, especially tobacco users are made aware of the harmful effects tobacco use.
The minister also said that the ministry, with Development Gateway had developed the first version of the Nigeria Tobacco Control Data Initiative (TCDI), which is a virtual (web-based) dashboard to provide information on tobacco prevalence and other parameters.
He then urged Nigerians to avoid tobacco and exposure to second-hand smoke, explaining that quitting tobacco is beneficial as it decreases the risk of many diseases.
“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.”
