{"id":50940,"date":"2021-06-25T13:45:41","date_gmt":"2021-06-25T12:45:41","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=50940"},"modified":"2021-06-25T13:45:41","modified_gmt":"2021-06-25T12:45:41","slug":"nigeria-can-earn-n600bn-from-tobacco-alcohol-tax-increase-world-bank","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2021\/06\/25\/nigeria-can-earn-n600bn-from-tobacco-alcohol-tax-increase-world-bank\/","title":{"rendered":"Nigeria can earn N600Bn from tobacco, alcohol tax increase &#8211; World Bank"},"content":{"rendered":"<p>The World Bank has disclosed that Nigeria can generate more than N600 billion annually by increasing excise dutiee on tobacco and alcohol as recommended in its<strong>\u00a0<a href=\"http:\/\/documents1.worldbank.org\/curated\/en\/389281623682704986\/pdf\/Resilience-through-Reforms.pdf\" target=\"_blank\" rel=\"noopener\">Nigeria development update (NDU) report<\/a>.<\/strong><\/p>\n<p>This was disclosed by a senior tax specialist,\u00a0Rajul Awasthi at the World Bank, said this during a virtual summit on domestic revenue mobilisation on Thursday.<\/p>\n<p>According to the NDU report, excise duties can boost tax revenue by up to one percent of gross domestic product (GDP).<\/p>\n<p>\u201cOn alcohol and tobacco, Nigeria applies an ad valorem rate of 20 percent, which is less than half the median of its African peers,\u201d the report reads.<\/p>\n<p>\u201cTo effectively tap into this revenue source, Nigeria could retain the current ad valorem excises but augment them with specific ones.<\/p>\n<p>\u201cWorld 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.\u201d<\/p>\n<p>Speaking at the summit, Awasthi said Nigeria has one of the lowest excise duty rates on tobacco and alcohol in <a href=\"https:\/\/www.withinnigeria.com\/news\/2021\/06\/24\/1994-african-cup-of-nations-buhari-allocates-houses-to-super-eagles-squad\/\">Africa<\/a>, and the duty rate on cigarettes is lower than the standard set by the Economic Community of West African States (ECOWAS).<\/p>\n<p>\u201cIf 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,\u201d Awasthi said.<\/p>\n<p>\u201cExcises 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.\u201d<\/p>\n<p>The World Bank further advised the federal government to embrace tax policies that do not endanger investments, jobs or the growth of the economy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The World Bank has disclosed that Nigeria can generate more than N600 billion annually by increasing excise dutiee on tobacco and alcohol as recommended in its\u00a0Nigeria development update (NDU) report. This was disclosed by a senior tax specialist,\u00a0Rajul Awasthi at the World Bank, said this during a virtual summit on domestic revenue mobilisation on Thursday. [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":16980,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[37],"tags":[11803,6575,11802,4522],"class_list":["post-50940","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world","tag-alcohol-tax","tag-gross-domestic-product-gdp","tag-tobacco","tag-world-bank"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Nigeria can earn N600Bn from tobacco, alcohol tax increase - World Bank<\/title>\n<meta name=\"description\" content=\"The World Bank has disclosed that Nigeria can generate more than N600 billion annually by increasing excise dutiee on tobacco and alcohol as recommended in its\u00a0Nigeria development update (NDU) report.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.withinnigeria.com\/news\/2021\/06\/25\/nigeria-can-earn-n600bn-from-tobacco-alcohol-tax-increase-world-bank\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nigeria can earn N600Bn from tobacco, alcohol tax increase - World Bank\" \/>\n<meta property=\"og:description\" content=\"The World Bank has disclosed that Nigeria can generate more than N600 billion annually by increasing excise dutiee on tobacco and alcohol as recommended\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.withinnigeria.com\/news\/2021\/06\/25\/nigeria-can-earn-n600bn-from-tobacco-alcohol-tax-increase-world-bank\/\" \/>\n<meta property=\"og:site_name\" content=\"NEWS PICKS \u2014 WITHIN NIGERIA\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/facebook.com\/withinnigeria\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/SodiqAdewaleChocomilo?mibextid=ZbWKwL\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-25T12:45:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.withinnigeria.com\/news\/wp-content\/uploads\/sites\/5\/2021\/04\/adewale_chocomilo\/2021\/04\/03\/World-Bank-750x422-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"750\" \/>\n\t<meta property=\"og:image:height\" content=\"422\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Sodiq Lawal Chocomilo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@OChocomilo\" \/>\n<meta name=\"twitter:site\" content=\"@withinnigeria\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sodiq Lawal Chocomilo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\\\/\\\/www.withinnigeria.com\\\/news\\\/2021\\\/06\\\/25\\\/nigeria-can-earn-n600bn-from-tobacco-alcohol-tax-increase-world-bank\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.withinnigeria.com\\\/news\\\/2021\\\/06\\\/25\\\/nigeria-can-earn-n600bn-from-tobacco-alcohol-tax-increase-world-bank\\\/\"},\"author\":{\"name\":\"Sodiq Lawal Chocomilo\",\"@id\":\"https:\\\/\\\/www.withinnigeria.com\\\/news\\\/#\\\/schema\\\/person\\\/db8593431a99b3751c40316ba4b4a452\"},\"headline\":\"Nigeria can earn N600Bn from tobacco, alcohol tax increase &#8211; 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