EFFECTIVE FROM MAY 1:𝗡𝗜𝗚𝗘𝗥𝗜𝗔𝗡𝗦 𝗧𝗢 𝗣𝗔𝗬 𝗠𝗢𝗥𝗘 𝗢𝗡 𝗕𝗘𝗘𝗥, 𝗜𝗠𝗣𝗢𝗥𝗧𝗘𝗗 𝗩𝗘𝗛𝗜𝗖𝗟𝗘𝗦, 𝗣𝗟𝗔𝗦𝗧𝗜𝗖𝗦 𝗢𝗧𝗛𝗘𝗥𝗦 𝗔𝗦 𝗕𝗨𝗛𝗔𝗥𝗜 𝗜𝗡𝗧𝗥𝗢𝗗𝗨𝗖𝗘𝗦 𝗢𝗩𝗘𝗥 𝗙𝗜𝗩𝗘 𝗡𝗘𝗪 𝗧𝗔𝗫ES
Nigerians to pay more on beer, imported vehicles, plastics others As Buhari Introduces Over Five New Taxes
With about a month to the end of his tenure, President Muhammadu Buhari has introduced additional taxes as his parting gift to Nigerians after eight years in office
The president who began his second term in 2015 will handover on May 29, 2023 to the president- elect, Bola Tinubu.
The Federal Government introduced new Fiscal Policy Measures (FPM) for 2023 in a Circular dated 20 April 2023 signed by Zainab Ahmed, Minister of Finance, Budget and National Planning.
The circular is with reference number, HMFBNP/MDAs/CIRCULAR/2023FP//04 and titled, ‘Approval For The Implementation Of The 2023 Fiscal Policy Measures And Tariff Amendments.’
The FPM introduced additional excise taxes ranging from 20 per cent to 100 per cent on alcoholic beverages, tobacco, wines and spirits.
Nigeria will begin to tax single use plastic while the circular also confirmed that the five per cent telecommunication tax has been approved.
The taxes will take effect June 1, 2023 which is after the end of Buhari’s administration.
The document reads in part, “This is to confirm that His Excellency, Mr. President has approved for the implementation of the 2023 Fiscal Policy Measures made up of Supplementary Protection Measures (SPM) for the implementation of the ECOWAS Common External Tariff (CET) 2022 – 2026 and a revised excise duty rates on Alcoholic beverages, Cigarettes & Tobacco products, as well as introduction of excise duty on Single Use Plastics (SUPs).
“As part of Nigeria’s commitment to climate change adaptation and mitigation to environmental degradation, a Green Tax made up of excise duty on Single Use Plastics (SUPs) and Import Adjustment Tax (IAT) Levy is introduced on Motor Vehicles of 2000cubic centimetres (cc) and above.”
The Supplementary Protection Measures (SPM) deals with the implementation of the ECOWAS Common External Tariff 2022-2026.
The changes are effective from 1 May 2023 subject to 90-days grace period for importers who had opened Form M before 1 May 2023.
The affected items are: rice, woven fabrics, ceramics tiles and sinks, steel, containers for compressed or liquified gas, aluminum cans, washing machines, electric generating sets and rotary converters, smart phones, new and used passenger motor vehicles and electricity meters.
On the Revised Excise Duty Rates, additional excise taxes ranging from 20 per cent to 100 per cent increase on previously approved rates for alcoholic beverages, tobacco, wines and spirits have been introduced effective from 1 June 2023.
These are above the 2022 FPM’s approved Roadmap for 2022-2024 in the form of new and higher ad-valorem excise duties and specific rates while the excise duty rate on non-alcoholic beverages was retained at of N10 per litre.
On the Green Taxes, the FG will charge by way of excise duty on Single Use Plastics (SUPs) like plastic containers, films and bags at the rate of 10 per cent.
There is also an Import Adjustment Tax (IAT) levy that was introduced on motor vehicles of 2000 cc to 3999 cc at 2 per cent.
For vehicles of 4000cc and above, the tax will be 4 per cent while vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are exempted.