Federal govt announces new tax regime on cigarettes, to collect N3,000 per litre of Shisha

The Federal Government has announced that it has reviewed its taxes on tobacco products in the country.

In a message posted on its Social media accounts on Thursday, It noted that tax on cigarettes increased by 30 per cent as part of its control measures against public health.

The message quoted the Minister of State for Health, Olorunnimbe Mamora speaking at the launch of the Tobacco Control Data Initiative Dashboard in Abuja.

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 N3,000 per litre.

“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,” Mamora said.

“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.”

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.