Saturday, June 22, 2024

Nigeria: Nigeria Introduces New Taxes On Beer, Imported Vehicles, Plastics

Under the newly introduced taxes, the federal government will charge N75 per litre of beer, stout or wine imported into Nigeria

The Nigerian government has approved the implementation of the 2023 fiscal policy measures and revised excise duty rates on alcoholic beverages, cigarettes and tobacco products.

The government also introduced excise duty on single-use plastics.

Under the newly introduced taxes, the federal government will charge N75 per litre of beer, stout or wine imported into Nigeria.

The disclosure was contained in a Circular (HMFBNP/MDAs/circular/2023 FP/04) dated 20 April 2023, and signed by the Minister of Finance, Budget and National Planning, Zainab Ahmed.

Taiwo Oyedele of PricewaterhouseCoopers on his official Twitter page highlighted the details of the new tax regime contained in the new Fiscal Policy Measures (FPM) documents and approved by President Muhammadu Buhari.

The minister noted that N75 per litre will be charged on “beer and stout including all alcoholic beverages and beer not made from malt- whether fermented or not fermented” in 2023, adding that this new excise duty on beer and stout will be increased to N100 per litre in 2024.

Before the new rates, the government taxed imported alcoholic beverages using valorem rates, levying of tax or customs duties proportionate to the estimated value of the goods or transaction concerned.

With the new policy, the same excise rate for beer will be applied to the importation of wine.

Under the tax laws, two-litre engine vehicles will attract an Import Adjustment Tax (IAT) of two per cent while vehicles with four-litre engines and above will attract a four per cent IAT with effect from 1 June 2023.

The federal 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 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); 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 (NPK).

The government also introduced a Green Tax by way of excise duty on Single Use Plastics (SUPs) including plastic containers, films and bags at the rate of 10 per cent.