THUR, 30 JUNE, 2022-theGBJournal| “With effect from 1st June 2022, the FGN has commenced implementation of a new three-year tobacco tax regime, which will end in 2024. This new regime increased the Ad-Valorem tax rate from 20% to 30%.
“In addition to the 30% 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 kilogram 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. It also prompts tobacco users to switch expending their resources on tobacco products to healthy alternatives such as education, health, nutrition, etc.”
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