The federal government has imposed additional levies on imported automobiles, alcoholic drinks, and single-use plastics. It has also added to the list of products that are not permitted to be imported into the nation.
Imported vehicles with engines ranging from 2000cc (2 litres) to 3999cc (3.9 litres) will be subject to an additional charge known as Import Adjustment Tax (IAT) of 2% of the vehicle’s value, while vehicles with engines ranging from 4000cc (4 litres) and above will be subject to IAT of 4% of the vehicle’s value.
The additional fee is in addition to the 35% import tariff and 35% levy paid by automobile importers. Vehicles with less than 2000cc, mass transit buses, electric automobiles, and locally built vehicles are exempt from the IAT levy. The Federal Government would also levy N75 per litre of imported beer, stout, and wine in 2023, and N100 per litre in 2024.
Prior to the current tax scheme, the government taxed imported alcoholic drinks ad valorem, or in proportion to the anticipated worth of the items or transaction in question.
The government has also updated the list of prohibited imports to include used motor vehicles older than 12 years from the year of production, paracetamol pills and syrups, cotrimozazole tablets and syrups, metronidazole tablets and syrups, and chloroquine tablets and syrups.
Folic acid pills, vitamin B complex tablets (excluding modified release formulations), multivitamin tablets, capsules, and syrups (unless special formulations), and aspirin tablets (except modified release formulations and soluble aspirin).
Others are magnesium trisilicate tablets and suspensions, piperazine tablets and syrups, levamisole tablets and syrups, ointments penicillin/gentamycin, pyrantel pamoate tablets and syrups, intravenous fluids (dextrose, normal saline etc), waste pharmaceutiques and mineral or chemical fertilisers containing the three fertilising elements – nitrogen, phosphorus and potassium.
It also introduced a green tax by way of excise duty on single use plastics including plastic containers, films and bags at the rate of 10 percent.
According to a circular issued by the Federal Ministry of Finance, Budget and National Planning and addressed to all Ministries, Departments and Agencies on April 20, 2023, the new tax regime comes into effect on June 1, 2023.
