FGN increases taxes on alcoholic beverages, large imported vehicles

Story from Vivian DANIEL, Abuja

The Federal Government of Nigeria (FGN) has announced new taxes on imported vehicles, alcoholic beverages, and single-use plastics, as well as a ban on certain imports.

Imported vehicles with engine sizes ranging from 2000cc (2 litres) to 3999cc (3.9 litres) will be subject to an Import Adjustment Tax (IAT) levy of two per cent of their value, while those with 4000cc (4 litres) and above engines will attract IAT of four per cent.

The new levy is in addition to the existing 35% import duty and 35% levy paid by importers. However, vehicles with engines below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are exempt from the IAT levy.

The federal government has also introduced a new tax on alcoholic beverages, charging N75 per litre of beer, stout, and wine imported into the country in 2023, rising to N100 per litre in 2024. The Government previously taxed imported alcoholic beverages ad valorem, based on their estimated value.

The import prohibition list has also been revised, with used motor vehicles above 12 years from the year of manufacture, paracetamol tablets and syrups, cotrimoxazole tablets and syrups, metronidazole tablets and syrups, and chloroquine tablets and syrups added.

Other additions include folic acid tablets, vitamin B complex tablets (except modified release formulations), multivitamin tablets, capsules, and syrups (except special formulations), and aspirin tablets (except modified release formulations and soluble aspirin).

Additionally, 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 have been banned from import.

Finally, the government has introduced a green tax by way of excise duty on single-use plastics, including plastic containers, films, and bags, at a rate of 10 percent.

The new tax regime, as outlined in a circular issued by the Federal Ministry of Finance, Budget, and National Planning on April 20, 2023, comes into effect on June 1, 2023.

Follow the Neptune Prime channel on WhatsApp:

Do you have breaking news, interview request, opinion, suggestion, or want your event covered? Email us at neptuneprime2233@gmail.com