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Government Raises Import Duties On Consumable, Luxury Goods - Business (2) - Nairaland

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List Of 115 Items To Enjoy FG Import Duties Cut / FG Slashes Import Duties On 115 Items / FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives (2) (3) (4)

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Re: Government Raises Import Duties On Consumable, Luxury Goods by abubakar23: 9:25am On Dec 29, 2016
they want to encourage local consumption yet they do not patronize it. shame on their change agenda

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by DaudaAbu(m): 9:25am On Dec 29, 2016
Oh boy

Eleyi gidi gan oooo
Re: Government Raises Import Duties On Consumable, Luxury Goods by TeleboiZ005(m): 9:26am On Dec 29, 2016
J
Re: Government Raises Import Duties On Consumable, Luxury Goods by jericco1(m): 9:26am On Dec 29, 2016
trade by barter policies... anyways
Re: Government Raises Import Duties On Consumable, Luxury Goods by AloyalNigerian(m): 9:26am On Dec 29, 2016
Bravo. kiss
Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:26am On Dec 29, 2016
I just hope this won't backfire as seems to be the norm nowadays

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:29am On Dec 29, 2016
jericco1:
trade by barter policies... anyways

Where is there trade by barter? Did you even read the article?

In the article, it is stated that there would be increase in tariffs on luxury items like cars and yachts, and decrease in tariffs on imports for industrial components....with the aim of encouraging more local production.

Let us hope they are serious this time.

3 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:30am On Dec 29, 2016
[b]And i almost sold a car which i bought for 1.6m in 2014.. cutom cleared including shipping (honda accord 2009)..

I heard the car sells for 3.2 as at december... nigerian used 2.2..
... who know what january would hold?

Anyways... Good news i guess....[/b]

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:30am On Dec 29, 2016
This is good. Meanwhile that 2017 budget is a copy and paste job

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:30am On Dec 29, 2016
countbands:
Don't support increase in duty for antibiotics and essential drugs.

That is the harsh bit. But....there is a reduction in tariffs for import of industrial components, which may help local pharmaceutical companies to meet up demand.

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by dayleke: 9:32am On Dec 29, 2016
It is well na....
Re: Government Raises Import Duties On Consumable, Luxury Goods by agrovick(m): 9:32am On Dec 29, 2016
The real deal is spending these revenues on world class infrastructures, because this government that has budgeted 100M for kitchen utensils can not be trusted.
Re: Government Raises Import Duties On Consumable, Luxury Goods by chronique(m): 9:33am On Dec 29, 2016
The problem I have with this local production mantra, is that it encourages people to produce all manner of junks and substandard goods. I drank a locally produced wine on the 26th of december, and it tasted like diluted treetop. I know a lot of younger folks might not know what treetop is. It used to be one of the favorite drinks/juice for kids, way back in the 80's. Imagine an adult drinking such in place of wine? I had to stop using Irish spring in bathing after they banned the imported ones cos the locally produced one, is all soda, and burns my skin. I now use dudu osun at all cost.

5 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by jericco1(m): 9:36am On Dec 29, 2016
9jakohai:


Where is there trade by barter? Did you even read the article?

In the article, it is stated that there would be increase in tariffs on luxury items like cars and yachts, and decrease in tariffs on imports for industrial components....with the aim of encouraging more local production.

Let us hope they are serious this time.

my brother no be today. you see i like what they're doing regarding the rice okay? but the thing is government policies aren't sustainable
Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:38am On Dec 29, 2016
NAwa for changi
Re: Government Raises Import Duties On Consumable, Luxury Goods by crisycent: 9:39am On Dec 29, 2016
9jakohai:


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...



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).

When you "suddenly" increase duty on everything, what happens to the common man? As for local production, how has that worked? Look at rice for example. The scam of a lake rice is selling more than what we purchased foreign rice last year.

Do we even have the power to power the industries we have here? How many industries do we have left? Do you think by doing this industries will just soring up like grass? What about standard? Can local production compete with foreign standard? Apart from farming, what else can Nigerians do? The technology is not there, nothing!!!

It is okay for the FG to spend 100m on kitchen utensils that they will import from outside the country and they get a waiver and don't pay duty on it but the common man cannot.

2 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:43am On Dec 29, 2016
crisycent:


When you "suddenly" increase duty on everything, what happens to the common man? As for local production, how has that worked? Look at rice for example. The scam of a lake rice is selling more than what we purchased foreign rice last year.

Do we even have the power to power the industries we have here? How many industries do we have left? Do you think by doing this industries will just soring up like grass? What about standard? Can local production compete with foreign standard? Apart from farming, what else can Nigerians do? The technology is not there, nothing!!!

It is okay for the FG to spend 100m on kitchen utensils that they will import from outside the country and they get a waiver and don't pay duty on it but the common man cannot.




I guess we can regard the measures as the government putting pressure on itself to do the needful.....by making sure power is improved as well as transport.

And yes, we do need to change our economic policy. The reason why we have issues with our economy from independence is because we rely too much on income from selling crops and minerals.That is not the road to prosperity.

And imported goods prices are going to go higher because we do not have the forex to buy them....duties or not.

I just hope the government policy works this time.

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by OlaSpeaker(m): 9:45am On Dec 29, 2016
countbands:
Don't support increase in duty for antibiotics and essential drugs.
if they don't when will our local pharmaceuticals grow
Re: Government Raises Import Duties On Consumable, Luxury Goods by texazzpete(m): 9:45am On Dec 29, 2016
Utterly disgraceful government. Since when did an SUV become a 'luxury item'?

Why raise tariffs on imported vehicles when there's not enough local production to meet the needs of even the smallest state in Nigeria ?

Nonsense.

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by texazzpete(m): 9:46am On Dec 29, 2016
OlaSpeaker:

if they don't when will our local pharmaceuticals grow

Let them sort out the reasons why locally produced items are even more pricey than intems shipped in.

Ideally locally made should be cheaper and market forces would work properly. But this isn't the case.

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by OlaSpeaker(m): 9:47am On Dec 29, 2016
crisycent:


When you "suddenly" increase duty on everything, what happens to the common man? As for local production, how has that worked? Look at rice for example. The scam of a lake rice is selling more than what we purchased foreign rice last year.

Do we even have the power to power the industries we have here? How many industries do we have left? Do you think by doing this industries will just soring up like grass? What about standard? Can local production compete with foreign standard? Apart from farming, what else can Nigerians do? The technology is not there, nothing!!!

It is okay for the FG to spend 100m on kitchen utensils that they will import from outside the country and they get a waiver and don't pay duty on it but the common man cannot.



what will this government ever do to satisfy your kind

2 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by Tomasboy(m): 9:48am On Dec 29, 2016
9jakohai:


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.
You're seconded. . . You copied all the information I wanna shared on this from my mind like copy and paste

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by Nobody: 9:50am On Dec 29, 2016
texazzpete:
Utterly disgraceful government. Since when did an SUV become a 'luxury item'?

Why raise tariffs on imported vehicles when there's not enough local production to meet the needs of even the smallest state in Nigeria ?

Nonsense.

Why raise tariffs? Because right now, we do not have enough forex.

And if we start throwing away forex in the name of imports, we might end up being like Zimbabwe.

Yes, GEJ did not do that because oil prices were high, and we had enough forex to do what we wanted to do. Now the oil prices are low...and we do not have the freedom to do what we want to do like before.The seven fat years are over, the seven lean years have started.

And if you read the article, you would have seen the bit where government is planning to reduce tariffs on industrial components. That would help local industries well well.(Speaking of cars, they should also do what Innoson suggested, and reduce tariffs on things like engines and other components.).

Better still would be govt improving public transport like railways, and waterways...so that we rely less on cars.That reduces the demand for cars. I don't even mind them taking a loan for that.

And let's be frank. This our economic policy since independence where we earn forex from selling raw materials, and use the kudi to import our needs has to change. We cannot continue like that forever. This goes beyond politics, and into the realm of common sense.We have to do everything right now to earn forex for this country at a rate higher than how we spend it.

4 Likes

Re: Government Raises Import Duties On Consumable, Luxury Goods by OlaSpeaker(m): 9:54am On Dec 29, 2016
texazzpete:


Let them sort out the reasons why locally produced items are even more pricey than intems shipped in.

Ideally locally made should be cheaper and market forces would work properly. But this isn't the case.
what you should have said is government should regulate price and not saying otherwise
Re: Government Raises Import Duties On Consumable, Luxury Goods by Larrykaysail(m): 10:02am On Dec 29, 2016
Truth234:
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/


Am feeling the pain from Yankee, this government is wicked, just looking for a way to money

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by KidsNEXTdoor: 10:05am On Dec 29, 2016
Atiku2019:
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

Which local production are u talking about
Re: Government Raises Import Duties On Consumable, Luxury Goods by karid(m): 10:06am On Dec 29, 2016
Good one this was my expectations not that of dollar rise we can't produce somethings but some with time we can fashola u have being challenged make sure the power supply is steady to reduce cost of production

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by seguno2: 10:12am On Dec 29, 2016
This is a nice one from our president.
Re: Government Raises Import Duties On Consumable, Luxury Goods by Exponental(m): 10:18am On Dec 29, 2016
Good plans bad timing. No palliatives, no nothing!

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by seguno2: 10:20am On Dec 29, 2016
Let us hope that Buhari will not spoil everything by giving import duty WAIVERS to his cabal.
That is how he gave heavily DISCOUNTED foreign exchange rate to Dangote making him a mega monopolist.

1 Like

Re: Government Raises Import Duties On Consumable, Luxury Goods by texazzpete(m): 10:23am On Dec 29, 2016
9jakohai:


Why raise tariffs? Because right now, we do not have enough forex.

And if we start throwing away forex in the name of imports, we might end up being like Zimbabwe.

Yes, GEJ did not do that because oil prices were high, and we had enough forex to do what we wanted to do. Now the oil prices are low...and we do not have the freedom to do what we want to do like before.The seven fat years are over, the seven lean years have started.

And if you read the article, you would have seen the bit where government is planning to reduce tariffs on industrial components. That would help local industries well well.(Speaking of cars, they should also do what Innoson suggested, and reduce tariffs on things like engines and other components.).

Better still would be govt improving public transport like railways, and waterways...so that we rely less on cars.That reduces the demand for cars. I don't even mind them taking a loan for that.

And let's be frank. This our economic policy since independence where we earn forex from selling raw materials, and use the kudi to import our needs has to change. We cannot continue like that forever. This goes beyond politics, and into the realm of common sense.We have to do everything right now to earn forex for this country at a rate higher than how we spend it.


Government can reduce the demand on our Forex by fixing the damn refineries.

Oh, I forgot. That requires the Government to actually govern properly.
They can also cut loopholes by trimming our over bloated budget. But they'd rather pass the cost on to the citizenry.

The Nigerian out there works hard, round the clock. Pays taxes. And despite that, the Nigerian state fails to fix roads, provide power and adequate security. So the Nigerian out there has to provide these things on his own, costing him much needed cash.

Then on top of that, insult is added to injury by the FG forcing the price of vehicles upwards. Isn't that double jeopardy? Handing over brand new cars to former presidents and politician flunkies while making it impossible for a civil seevabt to buy any car made in the last 5 years!


Thank you for taking the time to type out long term solutions like railways or water transport. Thank you for your blind optimism about an industrial revolution in NIGERIA, but that is not supported by historical performance.

We need more money as a nation, but not at the expense of the regular joe.

3 Likes 1 Share

Re: Government Raises Import Duties On Consumable, Luxury Goods by UncleJudax(m): 10:24am On Dec 29, 2016
Sunnycliff:
This is commendable. I pray they also raise the tax of those mansions to raise funds for the poor masses.
Raise funds for the poor masses? You must be understudying a comedian at the moment. Good one!

2 Likes

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