The Federal Government of Nigeria has launched a new set of taxes on various items, including beer, imported vehicles, and single-use plastics.
Imported beer or stout including all alcoholic beverages and non-malt beers in Nigeria would henceforth be charged N75 per litre.
The Minister of Finance, Zainab Ahmed made this known in a recent announcement.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
The excise duty on beer and stout will increase to N100 per litre in 2024. This was unlike previously imported alcoholic beverages that were taxed using valorem rates based on estimated value. Wine would also follow the same excise rate as beer for importation purposes.
Furthermore, starting from June 1, 2023, vehicles with engine sizes of 2 liters would incur a 2% Import Adjustment Tax (IAT), while those with 4 liters and above would be subject to a 4% IAT, as per the tax laws.
Single Use Plastics (SUPs) such as plastic containers, films, and bags would be taxed at a rate of 10% through a new Green Tax that would be imposed as an excise duty.
The IAT levy on motor vehicles was also revised, with a 2% tax being imposed on vehicles with engine sizes between 2000 cc and 3999 ccs, while vehicles with engine sizes of 4000 cc and above would be taxed 4%.
However, vehicles with engine sizes below 2000cc, mass transit buses, electric cars, and locally manufactured vehicles would be exempted from this tax.
More tax changes The circular to the ministries also highlighted the introduction of a 5% excise duty on telecommunication services, which was approved by the President and prescribed in the Official Gazette No. 88, Vol. 109 of 11 May 2022, as per the Finance Act 2020.
Going forward, this tax would apply to mobile telephone services (GSM), fixed telephone, and both postpaid and prepaid internet services
Supplementary Protection Measures (SPM) related to implementing the ECOWAS Common External Tariff 2022-2026 would be effective from 1 May 2023.
The circular indicated that importers who had opened their businesses within the last 90 days would be given a grace period.
These changes would be effective from June 1, 2023, according to reports.
