The Federal Government has introduced new set of taxes on imported vehicles, alcoholic beverages and single use plastics. It has also added to the list of items banned from being imported into the country.
Under the new tax regime, imported vehicles with 2000cc (2 litres) to 3999cc (3.9 litres) engine will pay an additional charge known as Import Adjustment Tax (IAT) levy of two per cent of the value of the vehicle while vehicles with 4000cc (4 litres) and above engines will attract IAT of four per cent of their value.
The new levy is in addition to the 35% import duty and 35% levy being paid by importers of vehicles.
However, vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are exempt from the IAT levy.
The Federal Government will also charge N75 per litre of beer, stout and wine imported into the country in 2023 and N100 per litre in 2024.
Before the new tax regime, the government taxed imported alcoholic beverages ad valorem i.e. levying of tax or customs duties proportionate to the estimated value of the goods or transaction concerned.
The 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 and syrups, cotrimozazole tablets and syrups, metronidazole tablets and syrups and chloroquine tablets and syrups.
Also included on the list are 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).
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.
Culled from Ships & Ports