Follow Us on Google
By Steve Agbota
Controversy has trialed the Federal Government’s new set of taxes introduced on imported vehicles, alcoholic beverages and single use plastics.
This is even as government has also increased the list of items banned from being imported into the country.
The development comes as stakeholders and motor dealers kicked against new taxes and levies by government, saying the policy will send many people out of business and cause job losses.
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.
Daily Sun learnt that 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) of 2 per cent of the value of the vehicle while vehicles with 4000cc (4 litres) and above engines will attract IAT of 4 per cent of their value. The new levy is in addition to the 35 per cent import duty and 35 per cent levy being paid by vehicles importers.
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, 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.
Government 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.
Reacting to the new taxes, the President, United Berger Motor Dealers Association Mr. Metche Nnadiekwe, said the new levy introduced on the imported vehicles is as good as closing the business.
He said the Federal Government should have closed down the businesses instead of using this system to suffer Nigerians.
“For me I don’t understand this type of thing. The implication is that it is not only the people who are into auto business that will feel the impact of the new levy but all Nigerians.”
Some people will fissile out of the business and by the time they use the new tariff to clear their vehicles, they will include the money into the vehicles when they want to sell it and the buyer will be the one to suffer it more. So I don’t understand this type of a thing,” he said.
