IMF Insists Nigeria’s Excise Duties On Tobacco, Alcohol Remain Very Low
Despite the Nigerian government raising excise duties on tobacco and alcohol recently, the International Monetary Fund, IMF insists Nigeria’s excise duties on those class of products remain low.
The Fund wants Nigeria to raise it further if it wants to raise enough money to meets its needs.
The Fund said this in its 2017 mission report.
Specifically, IMF wants Nigeria to raise the excise duty on a stick of cigarette to 5 naira as a sure way to raise enough cash.
This is five times higher than the one-naira excise duty per stick of cigarette that Nigeria approved on Sunday.
The Fund stated in the report that tobacco prices should be adjusted upwards in conformity with the global tobacco convention goal of achieving an excise burden of 64% of the retail price per pack of 20 cigarettes.
For alcoholic beverages, the Fund said that the current rate of 20% was low, and this, according to the IMF, is because the rate does not account for the external costs that abusive drinkers impose on other people.
The Fund said chronic heavy drinking had a harmful effect on the health system such as organ damage and birth defects.
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