After Beverages, Drinks, FG Announces N3,000 Per Litre Shisha Tax, Targets N3.8trn Non-Oil Revenue Annually

After Beverages, Drinks, FG Announces N3,000 Per Litre Shisha Tax, Targets N3.8trn Non-Oil Revenue Annually

  • The federal government will begin collecting N3,000 tax for every litre of Shisha consumed in Nigeria
  • The move follows the recent implementation of N10 tax on one litre of Sugar-Sweetened Beverages
  • FG is hoping that raising the bar in tax collection will help in its drive to push Nigeria's non-oil revenue amid challenges in oil income

The Federal Government has announced a new Cigarette Tax regime that will see the price for a pack of 20 cigarettes increase from N58 to N80 while shisha will be taxed at N3,000 per litre.

This was revealed by minister of state for health, Olorunnimbe Mamora, on Tuesday at the launch of the Tobacco Control Data Initiative Dashboard in Abuja, the Punch reports.

He revealed that the new tobacco tax regime went into effect on the 1st of June.

FG tax on shisha
President Buhari is determined to boost Nigeria's non-oil revenue income Credit: Presidency
Source: Facebook

The Minister stated that the new tax regime will see a 30% tax increase on cigarettes.

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Mamora said:

“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.
“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.”

He stated that the pro-health tax is an effective public health control measure against the behavioural risk factor

Government target N3.8 trillion in revenue

Meanwhile, the Federal Government through the Federal Executive Council (FEC) has approved reforms to boost Nigeria’s non-oil revenue to N3.8 trillion and oil revenue to N160 billion annually.

The Sun reports that the new revenue target is contained in the Accelerating Revenue Mobilisation Reforms report submitted by Finance Minister, Zainab Ahmed on Wednesday at the Presidential Villa, Abuja.

FG begins N10 tax for every 1-litre beverage, drinks produce in Nigeria

You will recall that had reported the move from the federal government to begin collecting N10 tax for every litre of carbonated sugar drinks and beverages

The new tax is expected will help reduce the consumption of Sugar-Sweetened Beverages (SSBs) in Nigeria.

The implementation is despite Manufacturers' plea to FG to halt the plan due to the rising cost of production


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