• Economy
  • Industry
    • Industry
    • Banking
    • Agriculture
    • Energy
    • Telecoms
    • Real Estate
    • Insurance
    • Manufacturing
    • Education
    • Transportation
    • Technology
    • Media
    • Textile
    • Tourism
  • Markets
  • SME Focus
  • Financial Crime
  • World
    • World
    • United States
    • Asia
    • China
    • Europe
    • Britain
    • South America
  • News
  • Opinion
May 20, 2022

  • Economy
  • Industry
      • Banking
      • Agriculture
      • Energy
      • Telecoms
      • Real Estate
      • Insurance
      • Manufacturing
      • Education
      • Transportation
      • Technology
      • Media
      • Textile
      • Tourism
    • Markets
    • SME Focus
    • Financial Crime
    • World
      • United States
      • Asia
      • China
      • Europe
      • Britain
      • South America
    • News
    • Opinion

    HomeNewsNigeria can earn N600bn from tobacco, alcohol tax increase – World Bank

    Nigeria can earn N600bn from tobacco, alcohol tax increase – World Bank

    • June 28, 2021
    • 0 comments
    • Demola
    • Posted in News

    The World Bank says Nigeria can generate more than N600 billion annually by increasing excise duties on tobacco and alcohol as recommended in its Nigeria development update (NDU) report.

    Rajul Awasthi, a senior tax specialist at the World Bank, said this during a virtual summit on domestic revenue mobilisation on Thursday.

    According to the NDU report, excise duties can boost tax revenue by up to one percent of gross domestic product (GDP).

    “On alcohol and tobacco, Nigeria applies an ad valorem rate of 20 percent, which is less than half the median of its African peers,” the report reads.

    “To effectively tap into this revenue source, Nigeria could retain the current ad valorem excises but augment them with specific ones.

    “World Bank estimates show that retaining the current rates and gradually increasing the specific duty component to achieve tax incidence consistent with regional peers will generate additional revenue of N955 billion in the first year.”

    Speaking at the summit, Awasthi said Nigeria has one of the lowest excise duty rates on tobacco and alcohol in Africa, and the duty rate on cigarettes is lower than the standard set by the Economic Community of West African States (ECOWAS).

    “If Nigeria were to adopt the same rate of excise duty that Kenya has adopted, they can raise a significant amount of revenue. Similarly, if they are to adopt ECOWAS, a standard, that will also raise the revenue significantly,” Awasthi said.

    “Excises on tobacco and alcohol do not impact the vast majority of people and compliance can be monitored much more easily by the compliance agencies. If the measures outlined in our report are implemented, these excise duties on tobacco and alcohol can raise more than N600bn a year.”

    The World Bank further advised the federal government to embrace tax policies that do not endanger investments, jobs or the growth of the economy.

    Source: The Cable

  • Share on Tumblr
  • Comments

    comments

    Related Posts

    0 comments
    News

    Nigeria, Russia sign off military agreement

    0 comments
    News

    FIRS plans to recoup N10 trillion as tax from Nigerians in 2022

    0 comments
    News

    Nigeria begins second phase of COVID-19 vaccination

    We are ready to tax profits made by Google, Twitter in Nigeria – Osinbajo

    • June 28, 2021
    • 0 comments

    Qatar Airways to operate two daily flights to Lagos

    • June 28, 2021
    • 0 comments

    Share this

    About author

    Demola

    Related Posts

    0 comments
    News

    Nigeria, Russia sign off military agreement

    0 comments
    News

    FIRS plans to recoup N10 trillion as tax from Nigerians in 2022

    0 comments
    News

    Nigeria begins second phase of COVID-19 vaccination

    0 comments
    News

    UK donates 700,000 doses of Johnson & Johnson COVID-19 vaccines to Nigeria

    Tags

    • Alcohol
    • Nigeria
    • Tax
    • Tobacco
    • World Bank

    Leave a Reply Cancel reply

    © 2017 Business Africa
    • About Us
    • Ad Rates
    • Contact
     Tweet
     Share
     E-mail
     Tweet
     Share
     E-mail
     Tweet
     Share
     E-mail
    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.