Tag: cigarettes

  • Nigeria consumes 20 billion cigarettes annually, says minister

    No fewer than 20 billion sticks of cigarettes are consumed annually in Nigeria, Minister of Health Prof. Isaac Adewole said yesterday.

    Adewole noted that 4.5 million adults, which is 5.6 per cent of the population, presently use tobacco products. About 82 per cent of the entire population are exposed to second-hand smoke when visiting bars/night clubs.

    He noted that 6.4 million adults  (29.3 per cent) are exposed to second hand smoking when visiting restaurants.

    Adewole spoke yesterday at a news briefing organised to mark the 2018 World No-Tobacco Day celebration in Abuja.

    The minister added that a recent studies among University of Abuja undergraduates revealed that 33.3 per cent of the students are smokers.

    Adewole said the country is losing $800 million annually to stroke, heart disease and diabetes.

    In 2015,  the minister said the country’s projected accumulated loss to tobacco was put at $7.6 billion, paradoxically.

    Adewole, who also spoke on the trending shisha (flavoured tobacco), said the country would not accept tobacco consumption in whatever disguise.

    He stressed the need to protect the future of the country.

    He regrettably noted that the tobacco industry makes huge profits without taking responsibility for the harm they do to public health.

    Explaining that “evidence also shows that for every $1 gain from tobacco business, about $3 is expended on healthcare cost.”

    On the ban on shisha, the minister said: “A key outcome of this review was the ban on all characterising flavours, including the addition of menthol into tobacco products.

    “This decision is to protect our children from getting enticed by flavoured tobacco products. Let me stress that the ban on tobacco products with characterising flavours is still in place and the ban includes shisha because it has flavour. I therefore urge the Consumer Protection Council (CPC)  and the law enforcement agencies to intensify arrest of defaulters. “He also noted that the latest tax increase on tobacco products was part of the efforts at controlling tobacco consumption in the country.

    “May I inform you that the new rate come into effect from today, June 4, 2018. It is a tax increase of N20 per pack of 20 sticks of cigarettes; this would be raised to N40 per pack in 2019 and subsequently, N58 per pack in 2020. Although the tax increase is below the ECOWAS tax directive of at least 50 per cent ad valorem plus USD 0.02 per stick of cigarette, cigar and cigarillos (or USD 20 per net kilogramme for all other tobacco products), I believe Mr. President will lead ECOWAS in implementing this directive within a shortest possible time to move Nigeria near the WHO recommended tax increase that is equivalent to 70 per cent of retail price of tobacco products,” he added.

    The minister also stressed that “as taxes are being raised, we must prevent revenue leakages and curtail illicit trade in tobacco products, which is the argument often put forward by the tobacco industry”.

    He announced that the country required vigorous and multi-pronged strategies in the control of tobacco epidemic.

  • Cigarettes is my means of escape- TeddyA

    Self-acclaimed Alpha male and Big Brother housemate, TeddyA has revealed why he puffs cigarettes during his stay in the house.
    In a diary session with Biggie, TeddyA revealed that cigarettes are his own means of an escape from the petty drama in the house.
    He also revealed he wasn’t down for the continued arguments and the general discontent amongst the housemates as he pleaded for more creative sessions to express himself.
    “I am not down for petty arguments. That’s the reason why I smoke. For me, it is a means of escape. It just calms me down.”
    He also stated that he saw fellow housemate, Tobi Bakre as a competition and admitted to feeling wrong vibes when around Miracle.
    “I feel Tobi usually put me up for eviction as I have done with him overtime. I see him as a competition.
    “He (Tobi) is one I can share a few drinks with and relate to, compared to Miracle who I feel wrong vibes with whenever he is around.”
    TeddyA expressed his desire to work with a producer while craving more productive studio sessions alongside Rico.
    “I look forward to having a producer around. I feel there is a little dose of creativity here and I want more studio time.”
  • Excise duty: Cigarettes, alcohol to cost more

    Smokers have got some bad news- lighting up will cost. Also to pay more are alcoholic drinks consumers.

    President Muhammadu Buhari has approved an amendment to the excise duty rates for alcoholic beverages and tobacco with effect from June 4.

    Finance Minister Kemi Adeosun broke the news yesterday in a statement by her media aide Oluyinka Akintunde.

    She said the new excise duty rates were spread over a three-year period from 2018 to 2020 to moderate the impact on prices of the products.

    The minister added that Buhari granted a grace period of 90 days to manufacturers.

    She said  the new excise duty regimes was decided at an all-inclusive stakeholder engagements by the Tariff Technical Committee of the Federal Ministry of Finance with key industry stakeholders.

    Mrs. Adeosun said: “The Tariff Technical Committee (TCC) recommended the slight adjustment in the excise duty charges after cautious considerations of the government’s Fiscal Policy Measures for 2018 and the reports of the World Bank and the International Monetary Fund Technical Assistance Mission on Nigeria’s Fiscal Policy.

    “The effect of the excise duty rates adjustment on trade and investment was also assessed by the Federal Ministry of Trade and Investment and it adopted the recommendations of the TTC.

    “Peer country comparisons were also carried out showing Nigeria as being behind the curve in the review of excise duty rates on alcoholic beverages and tobacco.”

    Mrs.  Adeosun said the new excise duty rate on tobacco was a combination of the existing ad-valorem base rate and specific rate while the ad-valorem rate was replaced with a specific rate for alcoholic beverages.

    “For alcoholic beverages, the current ad-valorem rate will be replaced with specific rates and spread over three years to moderate the impact on prices. This will curb the discretion in the Unit Cost Analysis (UCA) for determining the ad-valorem rate and prevent revenue leakages.

    “For tobacco, the government will maintain the current ad-valorem rate of 20 per cent and introduce additional specific rates with the implementation to be spread over a three-year period to also reasonably reduce the impact on prices,” she said.

    Under the newly approved excise duty rates for tobacco in addition to the 20 per cent ad-valorem rate, each stick of cigarette will attract a N1 specific rate per stick (N20 per pack of 20 sticks) in 2018, N2 specific rate per stick (N40 per pack of 20 sticks) in 2019 and N2.90k specific rate per stick (N58 per pack of 20 sticks) in 2020.

    The minister explained that Nigeria’s cumulative specific excise duty rate for tobacco was 23.2 per cent of the price of the most sold brand, as against 38.14 per cent in Algeria, 36.52 per cent in South Africa and 30 per cent in Gambia.

    The new specific excise duty rate for alcoholic beverages cuts across Beer & Stout, Wines and Spirits for the three years 2018 to 2020.

    Under the new regime, Beer & Stout would attract N0.30k per centiliter (Cl) in 2018 and N0.35k per Cl each in 2019 and 2020.

    Wines will attract N1.25k per Cl in 2018 and N1.50k per Cl each in 2019 and 2020, while N1.50k per Cl was approved for Spirits in 2018, N1.75k per Cl in 2019 and N2.00k per Cl in 2020.

     

  • Tackling public health menace of flavoured cigarettes

    Tackling public health menace of flavoured cigarettes

    There are clear pointers to the resurgence of illicit trading in tobacco. For stakeholders, the resurgence represents a major setback given the huge successes recorded in reducing the volume of illicit cigarettes to less than 20 percent in Nigeria in the last few decades, through multilateral collaboration and consistent clampdown on the trade by regulatory bodies. Prior to this period, the average volume of illicit cigarettes smuggled into the Nigerian market averaged 80 percent of the product consumed in the country. However, the success recorded in stemming the trade is being rolled back as flavoured cigarettes flood the Nigerian market.

    The sale and spread of flavoured cigarettes is, no doubt, an alarming dimension to the problem. They are outlawed in Nigeria and declared as contraband by the Standards Organisation of Nigeria (SON). Flavoured cigarettes give off a pleasant aroma when lit and have a strong appeal, especially for children, and may seem a safer alternative to conventional cigarette. However, the flavouring masks the pungent taste of the tobacco, which is manufactured in flavours such as strawberry, vanilla, orange, cherry, chocolate, etc. that are particularly attractive to the target demographic. For this reason, the health consequences for the youth and children can be very grave.

    In different parts of the world, concerted efforts have been made through new regulatory provisions to discourage underage people from smoking. In the United States, for example, as part of a national effort to reduce smoking in the country, on September 22, 2009, the United States Food and Drug Administration (FDA) placed a ban on cigarettes containing certain flavours. The ban was authorised by the Family Smoking Prevention and Tobacco Control Act (FSPTCA).

    This special rule for cigarettes prohibits cigarettes or any of its component parts (including the tobacco, filter, or paper) from containing, as a constituent (including a smoke constituent) or additive, an artificial or natural flavour or a herb or spice, which is attractive to children.

    FDA’s ban on certain flavoured cigarettes highlights the importance of reducing the number of children who start to smoke and who become addicted to dangerous tobacco products and should serve as a model for other countries where this menace is prevalent.

    It is important to note that flavoured cigarettes are clearly outlawed via Nigeria’s National Tobacco Control Act (TCA). It is clearly outlined in Sections E and G of Part 1 of the TCA. Some of the major objectives of the Act include “discouraging smoking initiation” and ensuring that “tobacco or tobacco products are not designed in any way that make them more addictive, especially to persons who are below 18 years of age.” However, implementation of this regulatory provision is yet to gain weight.

    Despite an alert by SON to the general public on the proliferation of the variants, sometime last year, importers of the brand have continued to trade the products. Quite worrisome is the extent to which some unscrupulous importers are willing to go in misleading SON and the general public by circumventing the law in a bid to hide the fact that their products are flavoured.

    In the past, these importers had breached this provision through devious means by not properly declaring the products for which license is procured; for instance, by using a licence for a non-flavoured brand to import a flavoured product. SON has repeatedly confirmed that the constituents of these brands of cigarettes are not in conformity with the regulatory requirements.

    The danger of flavoured cigarettes becomes clearer when viewed through the prism of illicit trade in cigarettes. Like illicit trade in conventional cigarettes, flavoured cigarettes are not licensed by regulatory authority and are usually trafficked illegally. The cigarettes have either been smuggled, counterfeited or have evaded duties after being legitimately manufactured in another country. They are priced much cheaper than approved cigarettes, and are not subjected to stringent regulation in the form of health warnings, product checks, or age verification before purchase. The greatest consequence is the fact that it robs government of its much-needed revenue as importers of flavoured cigarettes usually evade taxes.

    Moreover, compliance with prevailing industrial hygiene and safety standards is usually low. It is also important to note that proceeds from illicit trade in tobacco are used by criminal organisations to fund criminal activities such as global terrorism, human trafficking and money laundering. A 2012 Global Agenda Council of the World Economic Forum further affirmed that “illicit trade is a big source of revenue for transnational criminal networks.”

    Nigeria is losing grip on the battle against illicit trade in tobacco products as its porous land borders, poor intelligence network and corruption of due process have conspired to strengthen the sale of such tobacco products.

    The problem requires concerted efforts by government, civil society groups and the private sector to tackle. There is a need for greater collaboration between agencies and stakeholders in the law enforcement business, which include the Nigerian Customs Service, the Nigerian Police, the Standards Organisation of Nigeria (SON), and the Consumer Protection Council (CPC), in ensuring that smugglers and dealers trading banned tobacco products do not compromise health standards. Lately, there has been a noticeable relaxation of the strategy adopted by a special task force set up by SON and CPC in the past, which includes constant raids on dealers in illicit tobacco products in some parts of the country as well as distribution of flyers with visuals for semi-literate and literate consumers for public enlightenment on flavoured cigarettes. No doubt, through this approach huge mileage was gained in curbing the proliferation and consumption of the product as it served as a deterrent to other offenders.

    The increasing call for the implementation of the NTCA 2015 should not be limited to only the restriction of public smoking, but should also take into consideration this critical element of the regulation, which protects children from the allure of cigarettes.

     

    • Nwadike sent this piece from Lagos.
  • Why government should tax cigarettes

    SIR: Cigarette taxes serve as an important source of revenue generation for governments all over the world. In jurisdictions where the revenue implications of cigarette taxes have been recognised, cigarettes rank among the most heavily taxed commodities. To appreciate the potential revenue implications of cigarette taxes, one may consider statistics put forward by RJ Reynolds Tobacco Company to the effect that various tiers of government in the United States realised over $500billion in cigarette taxes since 1998.  Indeed, the revenue generated from cigarette taxation may be employed towards more beneficial ends such as funding important developmental projects.

    Considering the fact that the increasing incidence of tobacco-related illnesses have led to strains on health expenditure, cigarette taxes may also be used to adequately fund the resultant costs of health-care. In jurisdictions where health-care is largely funded from public revenue, this is a very essential consideration.

    Revenue generated from cigarette taxes may also be channelled towards programmes and measures aimed at tobacco control. For instance, a percentage of earnings derived from this tax may be used to fund medical research on the adverse effects that cigarettes have on smokers, or legislative advocacy programmes that promote laws that seek to regulate exposure to environmental tobacco smoke.

    Cigarette taxes are perhaps a good illustration of the concept of ‘sin taxes’. While not directly prohibiting the supply, demand, and consumption of cigarettes, government use ‘sin taxes’ to check the prevalence of certain behaviours, such as cigarette smoking or consumption of alcohol. The US President’s Cancer Panel’s 2007 Report, whilst recommending the increase of cigarette tax rates, acknowledged the effects of such taxes on three groups of persons – current smokers, former smokers, and potential smokers. According to the Report, by affecting the pricing of such products, cigarette taxes can lead current smokers to quit or reduce cigarette consumption, deter potential smokers, and prevent the relapse of former smokers.

    Taxation is an important instrument for regulating and restricting social behaviour. By employing increased cigarette tax rates, the ultimate objective is to influence the demand for and consumption levels of such products. Trends in other jurisdictions establish that low-income earners constitute the bulk of consumers of tobacco-related products; and that raising the tax rates for such products has often led to a remarkable decline in the demand for them. An increase in cigarette tax rates will invariably affect the pricing of cigarettes, which may in turn lead to a decline in the volume of demand for cigarettes.  In this respect, tax rates play a particularly important role in influencing social behaviour among certain groups; for instance the incidence of cigarette-smoking among low-income earners who prove to be especially vulnerable to tobacco-related illnesses.

    In the 1950s when vigorous scientific research began to expose the adverse health effects of smoking, various tiers of government in the United States responded by increasing cigarette excise taxes as a means to curb smoking. Nigeria will do well to emulate these measures.

    Available data in other jurisdictions clearly portray the alarming menace and consequences of smoking by under-age persons. In the United States, for instance, statistics provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives show that 1.5 million packs of cigarettes are illegally purchased for minors, and that 3, 900 teenagers take to smoking each day.

    While these disturbing statistics may not necessarily reflect the Nigerian situation, there are good grounds for arguing that cigarette taxes can be utilised to check the increase in the number of under-aged smokers in this country.

    The World Tobacco Day 2014, with its theme of ‘Raising taxes’ is without doubt an appropriate avenue to begin to implement and impose stiffer taxes on tobacco companies in Nigeria.

    •  Onaolapo Olatoyosi M.

    National Coordinator, Coalition Against Tobacco (CAT), Lagos