The Federal Government has raised duties on luxury goods
such as yachts and sport utility vehicles (SUVs) imported into the
country.
The increase contained in a circular by
the Minister of Finance, Mrs. Kemi Adeosun to the Nigeria Customs
Service.
Also affected are some food items that have local alternatives
such as rice, salt and
sugarcane, alcoholic spirit, beverages.
Import duty for sugar cane and salt will go from 10 per cent to 70 per cent; alcoholic spirit,
beverages and tobacco from 20 per cent to 60 per cent; and rice from 10
per cent to 60 per cent.
Also included on the list are packaged cement, from 10 per
cent to 50 per cent; cotton/ fabrics materials, from 35 per cent to 45
per cent; and used cars popular known as Tokunbo, from 10 per cent to 35
per cent respectively.
Medicaments such as anti-malarials and antibiotics; crude
palm oil; wheat flour; tomatoes paste; and cassava products are also
affected in the upward review of duties. But essential industrial sector
accessories, including bolt, industrial oil and other equipment are to
enjoy a downward review to spur local industrialisation.
According to the Finance Minister, President Buhari has already
approved the new tariff regime.The circular reads in part:
“This is to
confirm that Mr. President has approved the 2016 fiscal policy measures
made up of the Supplementary Protection Measures (SPM) for
implementation together with the ECOWAS CET 2015 – 2019 with effect from
17th October, 2016.”Consequently, all transactions prior to the effective date of this
circular shall be subjected to the tariff rates applicable before the
coming into effect of this 2016 fiscal policy measures.”
It added that the approved SPM was in line with the
provision of the ECOWAS CET comprising the following:
“An Import
Adjustment Tax (IAT) list with additional taxes on 173 tariff lines of
the extant ECOWAS CET; national list consisting of items with reduced
import duty rates to promote and encourage development in critical
sectors of the economy; an import prohibition list (Trade), applicable
only to certain goods originating from non-ECOWAS member states.”
Adeosun declared that the current fiscal policy measures
superseded those of 2015, and advised the customs and other stakeholders
to ensure strict compliance.
Source: The Guardian