FG introduces new taxes on beer, imported vehicles, plastics

The Federal Government has introduced new set of taxes on beer, imported vehicles and single use plastics.

It has also added to the list of items banned from being imported into the country. Under the newly introduced taxes, the Federal Government will charge N75 per litre of beer or stout imported into Nigeria. 

Under the newly introduced taxes, the Federal Government will charge N75 per litre of beer or stout imported into Nigeria. 

Before the new rates, the government taxed imported alcoholic beverages using valorem rates- levying of tax or customs duties) proportionate to the estimated value of the goods or transaction concerned. Now there is a specific rate not an estimate.

The same excise rate for beer will be applied to the importation of wine.Under the tax laws, two litre engine vehicles will attract an Import Adjustment Tax (IAT) of two percent while vehicles with four litre engines and above will attract four percent IAT with effect from 1June, 2023.

The Federal Ministry of Finance Budget and National Planning quietly issued a circular (HMFBNP/MDAs/circular/2023FP/04) to all Ministries, Departments and Agencies on April 20, 2023 informing them of the new developments.

Details of the recent tax regimes contained in the new Fiscal Policy Measures (FPM) documents and approved by President Muhammadu Buhari were revealed by Mr. Taiwo Oyedele of PricewaterhouseCoopers on Twitter. 

The Federal Government has also revised the import prohibition list with the inclusion of used motor vehicles above 12 years from the Year of manufacture; Paracetamol tablets Syrups; Cotrimoxazole tablets and Syrups; Metronidazole tablets and Syrups and Chloroquine tablets and Syrups.