FG Revises Excise Rates For Specific Products

The Federal Government of Nigeria ("FGN") has, via a Circular dated 7 February 2019 ("the Circular"), revised the excise rate on products classified under tariff heading (TH) 22.06. These products (together referred to as "the Affected Products") are:

• Other fermented beverages (for example, Cider, Perry, Mead, Sake);
• Mixture of fermented beverages; and
• Mixture of fermented beverages and non-alcoholic beverages not elsewhere specified or included

The prescribed rates for the Affected Products are ₦0.30K per centilitre effective from 4 June 2018 to 3 June 2019 (i.e. the first year) and ₦0.35K per centilitre from 4 June 2019 (i.e. the start date of the second year).

The new excise rates represent a significant reduction in the excise rates for the Affected Products. Prior to the Circular, beverages with relatively lower alcohol content (than beer and stout), paid excise at a rate as high as ₦1.50 per centilitre.