Importers Of Vehicles, Plastic, Alcoholic Beverages To Pay More As FG Hikes Taxes
The Federal Government has introduced a new set of taxes on alcoholic beverages, imported vehicles, and single-use plastics in its new tax regime.
Under the newly introduced taxes, the Federal Government will charge N75 per litre of beer, stout, or wine imported into Nigeria.
This was made known by Mr. Taiwo Oyedele of PricewaterhouseCoopers on his official Twitter account through the new Fiscal Policy Measures (FPM) for 2023 circulated April 20, 2023, and signed by the Minister of Finance, Budget and National Planning, Zainab Ahmed after being approved by President Muhammadu Buhari.
The minister pointed out that N75 per litre will be charged on “beer and stout including all alcoholic beverages and beer not made from malt- whether fermented or not fermented” in 2023, adding that this new excise duty on beer and stout will be increased to N100 per litre in 2024.
However, 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.
According to the report, 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.
Also, under the new tax laws, the Federal Government introduced Import Adjustment Tax (IAT) levy on motor vehicles of 2 litre engines (2000 cc to 3999 cc) at 2%, while vehicles with 4 litre engines (4000 cc) and above will attract 4% IAT with effect from June 1, 2023.
It also added that with effect from June 1, 2023, vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are exempted.