The Federal Government has introduced a new tax regime on some imported items with effect from June 1, 2023.
The items include vehicles, alcoholic beverages including beer, stout, wine, and single-use plastics such as plastic containers, films and bags.
This was contained in a circular dated April 20, 2023, which was issued by the Federal Ministry of Finance, Budget and National Planning and addressed to all Ministries, Departments and Agencies,
Under the new tax regime, imported vehicles with 2000cc (2 litres) to 3999cc (3.9 litres) engines will pay an additional charge known as Import Adjustment Tax (IAT) levy of 2 percent of the value of the vehicle while vehicles with 4000cc (4 litres) and above engines will attract IAT of 4 percent of their value.
According to the circular, this is in addition to the 35 percent import duty and 35 percent levy already being paid by importers of vehicles.
However, vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are exempted from the new IAT levy.
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The circular said the government will also charge N75 per litre of beer, stout and wine imported into the country in 2023 and N100 per litre in 2024.
In addition to the tax adjustment, the government has also reviewed the import prohibition list and included 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.
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.
