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Government Raises Import Duties On Consumable, Luxury Goods - Business - Nairaland

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FEC Approves Executive Orders On VAT And Excise Duties / FG Slashes Import Duties On 115 Items / FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives (1) (2) (3) (4)

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Government Raises Import Duties On Consumable, Luxury Goods by Truth234(m): 9:12am On Dec 29, 2016
The Federal Government has raised duties on luxury goods such as yachts and Sport Utility Vehicles (SUVs) imported into the country. But also affected are some food items such as rice, salt and sugarcane that have local alternatives.

The plan to raise the duties which was first contemplated by former Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo- Iweala under the immediate past administration of Dr. Goodluck Jonathan had remained on the drawing board due to Jonathan’s loss of the presidential election to the incumbent President Muhammadu Buhari and the consequent change of officials between the former administration and the current one.

Under the new Economic Community of West Africa (ECOWAS) Common External Tariff (CET) regime which administers import and export tariffs within the West African sub-region in the movement of goods, importers of yachts and other luxury automobiles such as SUVs, boats, sports cars, and other vessels used for pleasure are now to pay 70 per cent of the value of the vehicles as taxes (duties) to the Nigeria Customs Service (NCS). The new rate is a jump from the 20 per cent which the owners currently enjoy. The increase is contained in a circular by the Minister of Finance, Mrs. Kemi Adeosun to the NCS.

Other major items affected in the duty increase include sugar cane and salt 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.

The cut in the import tariff on items for industrial use may encourage entrepreneurs whose industries are shut down due to the high duties paid on imported components. Such companies may resume or expand their operations as a result of the incentives.

However, while the new policy may trigger a rise in the prices of some consumable goods until the demand for them is met locally, the NCS, which has been grappling with meeting the fiscal target set for it by the Federal Government may boost its revenue.

The policy which is coming on the heels of the recent ban by the NCS on all vehicle imports through the land borders in the country, as part of measures to curb smuggling of particularly used cars into the country is going to see citizens pay higher for used cars popularly known as ‘Tokunbo.”

The smuggling of cars into the country may have dealt a very big blow to the customs’ revenue generation as the budget minister recently announced that the NCS’ projected revenue for the third quarter of this year fell short of expectation by N100 billion, recording N200 billion instead of N300 billion target given to the agency by the Federal Government.

According to the Finance Minister, 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.

http://investorsking.com/government-raises-import-duties-consumable-luxury-goods/

2 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by Acekidc4(m): 9:13am On Dec 29, 2016
This is Both a Blessing and A Curse. Whichever way u wana View it.


I Know some particular pple will come here and start throwing tantrums and irresponsible words!!

11 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by Atiku2019: 9:16am On Dec 29, 2016
Other major items affected in the duty increase include sugar cane and salt 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.




I hope this will encourage Local Production cool

21 Likes 1 Share

Re: Government Raises Import Duties On Consumable, Luxury Goods by john1035: 9:17am On Dec 29, 2016
A good step in the right direction

8 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by adonbilivit: 9:17am On Dec 29, 2016
well...
Re: Government Raises Import Duties On Consumable, Luxury Goods by curvilicious: 9:18am On Dec 29, 2016
So they can buy 100m worth kitchen


APC!!! Shame!!!

21 Likes 1 Share

Re: Government Raises Import Duties On Consumable, Luxury Goods by Sunnycliff(m): 9:18am On Dec 29, 2016
This is commendable. I pray they also raise the tax of those mansions to raise funds for the poor masses.

14 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by Chidex2442(m): 9:18am On Dec 29, 2016
Tax for chopping your own money...... OK... Still observing

1 Like 1 Share

Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:19am On Dec 29, 2016
Good idea.

Let us use our scarce forex for things that bring us value

6 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by MrPresident1: 9:19am On Dec 29, 2016
FG raises tax on oxygen grin

7 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by immaculatengang(f): 9:19am On Dec 29, 2016
This is a welcome idea. Instead of total ban increase in duties ll generate revenue, discourage import, encourage local production.

14 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by amoduganja: 9:20am On Dec 29, 2016
p=
Re: Government Raises Import Duties On Consumable, Luxury Goods by Atiku2019: 9:20am On Dec 29, 2016
curvilicious:
So they can buy 100m worth kitchen


APC!!! Shame!!!





The plan to raise the duties which was first contemplated by former Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo- Iweala under the immediate past administration of Dr. Goodluck Jonathan had remained on the drawing board due to Jonathan’s loss of the presidential election to the incumbent President Muhammadu Buhari and the consequent change of officials between the former administration and the current one. cool

13 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by repogirl(f): 9:21am On Dec 29, 2016
Watch as it gravely backfires...As usual. There was a reason NOI held off on its implementation but Kemi will rush in without considering other factors.

23 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by countbands: 9:21am On Dec 29, 2016
Don't support increase in duty for antibiotics and essential drugs.

7 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:21am On Dec 29, 2016
Salt?

2 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by Esperooke(m): 9:21am On Dec 29, 2016
Overdue and good

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by Atiku2019: 9:21am On Dec 29, 2016
MrPresident1:
FG raises tax on oxygen grin


grin grin Na Die Be that Na

4 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by crisycent: 9:22am On Dec 29, 2016
See as zombies rush defend their leader. A country that cannot produce toothpick is raising duty on everything.

26 Likes 1 Share

Re: Government Raises Import Duties On Consumable, Luxury Goods by peekay007: 9:22am On Dec 29, 2016
kai Mr Man Comments your Reserve,speak for urself. i reserve my Comments grin
Acekidc4:
This is Both a Blessing and A Curse. Whichever way u wana View it.


I Know some particular pple will come here and start throwing tantrums and irresponsible words!!

1 Like 1 Share

Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:22am On Dec 29, 2016
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.

The cut in the import tariff on items for industrial use may encourage entrepreneurs whose industries are shut down due to the high duties paid on imported components. Such companies may resume or expand their operations as a result of the incentives.

However, while the new policy may trigger a rise in the prices of some consumable goods until the demand for them is met locally, the NCS, which has been grappling with meeting the fiscal target set for it by the Federal Government may boost its revenue.

So, in other words, there may be

1. Raise in prices in some daily consumables

2.At the same time local industrial production might be spurred/increased.

It is ,in the short term, good news and bad news.....but long term, hopefully....good news.

7 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by abumeinben(m): 9:22am On Dec 29, 2016
Govt....Have we started producing these items?

And is raising tax on import duties the only rill-over item from GEJ era? What happened to the National Conference outcomes?

7 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by Ijaya123: 9:22am On Dec 29, 2016
Good one here.

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by Atiku2019: 9:22am On Dec 29, 2016
Nma27:
Salt?

To encourage local production I guess cool

2 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by chigoizie7(m): 9:23am On Dec 29, 2016
What a wonderful news.


This is a welcome development.


But why now that I am planning on getting this my new 4matic?





Well, I so much love the idea, make we all begin to drive saloon cars.

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by okochaik: 9:23am On Dec 29, 2016
If we continue to ban or raise taxes on imported goods, i see Nigeria rise again. Naira will begin to heal, more companies will surface and jobs will be created

6 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by misterjosh(m): 9:23am On Dec 29, 2016
We are watching
Re: Government Raises Import Duties On Consumable, Luxury Goods by MrPresident1: 9:23am On Dec 29, 2016
Atiku2019:



grin grin Na Die Be that Na

All this one na preamble, they will raise the tax very soon grin
Re: Government Raises Import Duties On Consumable, Luxury Goods by Ijaya123: 9:23am On Dec 29, 2016
crisycent:
See as zombies rush defend their leader. A country that cannot produce toothpick is raising duty on everything.

Which country cannot produce toothpick?

4 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:24am On Dec 29, 2016
Atiku2019:



To encourage local production I guess cool
Cool

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by Goldenheart(m): 9:24am On Dec 29, 2016
cry
Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:24am On Dec 29, 2016
crisycent:
See as zombies rush defend their leader. A country that cannot produce toothpick is raising taxes on everything.

And if you read clearly, you would have seen that the aim is to increase local production.

Look, regardless of who is in charge, whether PDP or APC, it is time we faced the fact that we do not have enough forex, and if we don't take conservative measures, we would be like Zimbabwe in a matter of months.

And then there is this...

The cut in the import tariff on items for industrial use may encourage entrepreneurs whose industries are shut down due to the high duties paid on imported components. Such companies may resume or expand their operations as a result of the incentives.

I am not much of a fan of this government, but this shows that someone in govt is thinking a bit more clearly.

(And by the way, I don't care for your zombie and wailer games. You can play them elsewhere).

10 Likes 1 Share

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