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.
According to the Minister of Finance, Zainab Ahmed, N75 per litre will be charged on “beer and stout including all alcoholic beverages and beer not made from malt- wether fermented or not fermented” in 2023.
This new excise duty on beer and stout will be increased to N100 per litre in 2024.
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; 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); 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 (NPK)
The Federal Government also introduced a Green Tax by way of excise duty on Single Use Plastics (SUPs) including plastic containers, films and bags at the rate of 10 percent.
An Import Adjustment Tax (IAT) levy has been introduced on motor vehicles of 2000 cc to 3999 cc at 2 percent while 4000 cc and above will be taxed at 4 percent.
With effect from 1st June, 2023, “vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are exempted”.
The circular hrested the matter over the imposition of five percent excise duty on telecommunication services introduced via the Finance Act 2020 and prescribed in the Official Gazette No. 88, Vol. 109 of 11 May 2022 approved by the President.
Going forward, the five percent tax will apply to mobile telephone services (GSM), fixed telephone and internet services- postpaid and prepaid.
Under the Supplementary Protection Measures (SPM) as it relates to the implementation of the ECOWAS Common External Tariff 2022-2026, the circular stated that the changes are effective from 1 May 2023 subject to 90-days grace period for importers who had opened Form M before 1 May 2023.
Items on the list include rice, woven fabrics, ceramics tiles and sinks, steel, containers for compressed or liquified gas, aluminum cans, washing machines, electric generating sets and rotary converters, smart phones, new and used passenger motor vehicles and electricity meters. The applicable duties for most of the items are unchanged from the 2022 FPM rates.
-Advertisement-Grab our latest Magazine, "Chief Emeka Ozoani, Go-Getter & Go-Giver". Get your order fast and stress free.
For more details about Newswire Law&Events Magazine, kindly reach out to us on 08039218044, 09070309355. Email: email@example.com. You will be glad you did