The Nigerian government has banned the importation of used vehicles manufactured more than 12 years ago into the country.
The new tax system goes into effect on June 1, 2023, per a circular sent to all Ministries, Departments, and Agencies on April 20, 2023 by the Federal Ministry of Finance, Budget, and National Planning.
According to the new tax law, imported vehicles with engines ranging in size from 2000cc (2 litres) to 3999cc (3.9 litres) will be subject to an additional tax known as Import Adjustment Tax (IAT), which is levied at a rate of 2 per cent of the vehicle’s value for engines ranging in size from 4000cc (4 litres) and above.
The new charge is in addition to the 35 per cent import duty and 35 per cent levy that car importers already pay.In contrast, the IAT levy does not apply to vehicles with engines smaller than 2000cc, public transportation buses, electric vehicles, or automobiles made locally.
Additionally, the federal government will charge N75 per litre for imported wine, stout, and beer in 2023 and N100 per litre in 2024.Prior to the implementation of the new tax system, imported alcoholic beverages were subject to ad valorem taxation, which entails the imposition of tax or customs duties proportional to the estimated value of the goods or transaction in question.
The Buhari regime also instituted a 10 per cent excise duty on single-use plastics like plastic bags, films, and containers as a green tax.