Wednesday, September 9, 2020 / 10:00 AM
/ By Deloitte / Header Image Credit: Techcabal
The Federal Government of Nigeria (FGN) has re-introduced an ad-valorem excise structure to spirits and wines. With this introduction, excise duty on spirits, wines and cigarettes will now be based on both ad-valorem and specific excise structures. The FGN has also recalibrated the specific excise structure for levying excise duty on other tobacco-based products, to ensure that these products are effectively brought into the excise net.
The revisions were communicated in a circular signed by the Honourable Minister of Finance, Budget and National Planning, and dated 20 August 2020 ('the Circular'). The revisions, which will take effect immediately and supersede the circulars of 6 March 2018 and 7 February 2019, are in accordance with the Customs, Excise Tariff, Etc. (Consolidation) Act ('CETA'), which empower the President to impose, vary or remove any import duty or modify the schedules to CETA.
In a similar development (as contained in the Circular), the FGN has waived import duty on certain inputs used for the production of banknotes by the Nigeria Security Printing and Minting Plc.