FG Mulls 50% Tax Hike On Tobacco Products

The Federal Government plans to make Tobacco goods subject to a 50% excise tax, up from the current 30% ad-valorem rate.

Dr. Mangai Malau, head of the federal ministry of health’s noncommunicable disease division’s tobacco control unit, revealed this on Tuesday, April 18, during the National Tobacco Control Budget Advocates Meeting in Abuja.

Malau, who gave a presentation on “Overview of Tobacco Control Funding/Budgeting in Nigeria: Why Tobacco Control Budgeting and Funding?,” claimed that the federal government’s desire to reduce smoking is reflected in the tax hike.

He noted that, in addition to taxation being a major source of revenue for tobacco control, the appropriate application of tax policies by relevant parties is also necessary if tobacco control issues are to be addressed.

Malau stated that;

“In effectively controlling tobacco and tobacco products in Nigeria, funding is a critical component. The WHO Framework Convention on Tobacco Control recognises this and clearly stipulates in Article 26. It states that parties shall provide financial support in respect of its national activities intended to achieve the objective of the Convention, in accordance with its national plans, priorities and programmes.

It is also important to state that funding is a major provision of the National Tobacco Control Act. Section eight of the Act, provides for the Tobacco Control Fund, which shall be used to fund tobacco control activities programmes and projects. Tobacco use and exposure to secondhand smoke is a leading cause of mortality, morbidity, disability and impoverishment in the world.

It is the greatest risk factor for non-communicable diseases like hypertension, stroke, cancers, diabetes and chronic obstructive pulmonary diseases. Tobacco causes more than eight million deaths annually around the world, with more than seven million of those deaths as a result of direct tobacco use. And about 1.2 million resulting from non-smokers being exposed to second-hand smoke. Also, there is no safe level of exposure to tobacco smoke and even a brief exposure can be harmful to one’s health.”

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