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FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives - Business (2) - Nairaland

Nairaland Forum / Nairaland / General / Business / FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives (29959 Views)

Budget: FG Raises Non-oil GDP Projection To N104tn / FG Slashes Import Duties On 115 Items / Government Raises Import Duties On Consumable, Luxury Goods (2) (3) (4)

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Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by justicejay(m): 7:18am On Jan 03, 2017
Seems like they are now getting back to their senses. But am still not yet convinced they are always 1step forward 3steps backward

1 Like

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by Nobody: 7:20am On Jan 03, 2017
Toketimt:


All these are ongoing and u will agree with me that even if we focus on this alone, we will still be on it for at least the next five yrs considering the comatose state they met them. The question is should other excellent initiatives stop till then? Nigerian entrepreneurs are already hailing this move. That is all that matters.

Good answer to a very lame statement. Capital expenditures is up over two straight budgets and people continue to bleat.

1 Like

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by Emjay1310(m): 7:20am On Jan 03, 2017
Noted. But let the local manufacturers not see this as an avenue to increase the price of their own products too. And most importantly, quality is key to ensure local patronage. God bless Nigeria
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by Toketimt: 7:21am On Jan 03, 2017
12inches1:


To import and clear a 2015 car (which costs like 5million) before this was about 2 million. With this increase I guess it will be like 3 million (more than 50% the price) . I think Nigerians should all kuku start riding horses.


The same Kemi Adeosun that said the Govt would reduce import duties on cars to discourage importation thru cotonou. Then went ahead to increase. Hopeless and rudderless administration.

Increase cost of medication yet you go to UK for hear infection. Mr Integrity. You've not told us how much champagne u popped on Zahra's wedding.


Am sorry to say this but I will just be blunt because it's the plain truth.
If u av the resources to buy or thinking of buying a car even if it's a tokunbo, u are not part of the over 40% of Nigerians who are extremely poor. At least u can afford to eat well before thinking of buying a car.
Govt (fed and state because money collected goes to Federation account) needs more money and one of the best ways to source it is taxing luxury goods. As important a car is, it's still a luxury. U don't expect them to start taxing stuffs like garri and tomatoes. That's the norm worldwide.

10 Likes

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by adedayoa2(f): 7:21am On Jan 03, 2017
wristbangle:
Nice move and this should not affect the price of local goods because people are quick to inflate price of commodities when they hear this kind of news.
exactly, my fear is for this alone
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by lielbree: 7:22am On Jan 03, 2017
More strangulation of the masses
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by vizboy(m): 7:22am On Jan 03, 2017
Okay..........
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by IMASTEX: 7:22am On Jan 03, 2017
AdeniyiA:
As laudable as these measures are,the pertinent questions remain that,how ready and encouraged are the local industries to fill in the gaps being created?
Are the necessary infrastructures like roads, power, available and functioning effectively?

What I have noticed about our government is that they're very wasteful and love to build something on nothing,hence it eventually collapse
On point
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by nextstep(m): 7:23am On Jan 03, 2017
How come we never get advanced notice in this country? If last week I've already pledged 2mil to clear something, now I need to quickly source another 2-3 million this week otherwise my products are on hold?

2 Likes 1 Share

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by Toketimt: 7:23am On Jan 03, 2017
greenpasture:


Good answer to a very lame statement. Capital expenditures is up over two straight budgets and people continue to bleat.

Besides peeps have forgotten that these monies collected won't go to federal govt alone. All States that can pay salaries will benefit from it.

1 Like

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by adedayoa2(f): 7:23am On Jan 03, 2017
malele:





Am not sure u people read the post well.
Let me ask these few questions.

DO u have light for production in nigeria?
Do u have storage systems in nigeria?
How do people get forex for production of SUVS and other antibiotics mentioned?
What prevents the government from puting a timeline to stop these imports?
Hope u people know tarrif for tokunbo cars increased too, how many people Have money to buy new cars?
Hope u people know minimum wage is 18k?

It unfortunate that goat of of president started 2017 like this.
the light situation is fair enough, for the first time in my life, I visited Lagos and for 3 days, NEPA did not seize the light.

1 Like

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by linearity: 7:25am On Jan 03, 2017
Horlufemi:
This is what they should have done instead of banning forex for some items. I'm sure Nigeria will survive.

Sometimes trying too hard can make you fail.

This is a very bad policy. Economic Protectionism is a bad policy. This myopic policy now exposes Nigeria exports to similar fate abroad, thereby hurting Nigeria produce in international markets.

The government should have look into helping the manufacturing section with constant power supply, good roads and access to capital/forex; these will enable them to be competitive.

No family or country grows whose policies or strategy is refined to produce just enough to consume internally without planning to sell externally and also maintain conditions and policies that will encourage external buyers.

1 Like 1 Share

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by Delonn(m): 7:26am On Jan 03, 2017
malele:
The Federal Government has raised duties on luxury goods such as yachts and sport utility vehicles (SUVs) imported into the country.

The increase contained in a circular by the Minister of Finance, Mrs. Kemi Adeosun to the Nigeria Customs Service.


Also affected are some food items that have local alternatives such as rice, salt and sugarcane, alcoholic spirit, beverages.

Import duty for sugar cane and salt will go 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.
According to the Finance Minister, President 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.
Source: The Guardian


http://www.lindaikejisblog.com/2017/01/fg-raises-import-duties-on-luxury-goods.html?m=1

Not a bad move, but this really not going to affect only the rich. There is no price control in Nigeria. The local manufacturers will also up their prices and this will also make the masses suffer the more.
This move can only be sustainable and benefit the masses, if there is a price control on those listed items. My opinion.
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by passyhansome(m): 7:26am On Jan 03, 2017
AdeniyiA:
As laudable as these measures are,the pertinent questions remain that,how ready and encouraged are the local industries to fill in the gaps being created?
Are the necessary infrastructures like roads, power, available and functioning effectively?

What I have noticed about our government is that they're very wasteful and love to build something on nothing,hence it eventually collapse

You are far intelligent than those four that commented before you

3 Likes 1 Share

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by Toketimt: 7:27am On Jan 03, 2017
Profayo:
Why increase that of antimalarials and antibiotics? Are there viable local alternatives? And it is the poor people that have malaria and infections the most.

Yes, viable and so many local pharmaceutical companies are in the country. Infact, this should be completely banned left to me.

1 Like

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by VictorRomanov: 7:28am On Jan 03, 2017
One of the best decisions FG has made. 100% in support.


I'd say we should ban any goods that has a local substitute, no matter how poor the quality of the local substitute is.

Let's learn how to produce what we use.

3 Likes

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by nonjebose(m): 7:28am On Jan 03, 2017
malele:





Am not sure u people read the post well.
Let me ask these few questions.

DO u have light for production in nigeria?
Do u have storage systems in nigeria?
How do people get forex for production of SUVS and other antibiotics mentioned?
What prevents the government from puting a timeline to stop these imports?
Hope u people know tarrif for tokunbo cars increased too, how many people Have money to buy new cars?
Hope u people know minimum wage is 18k?

It unfortunate that goat of of president started 2017 like this.
Timeline never works in this country. Increase in tariff on luxury goods is long overdue. The local substitute issue would definitely come with some challenges associated with infrastructures, but overtime, this will open the space for both local and foreign investment in bridging the gap. An all import dependent country hardly attracts investors

1 Like

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by midol: 7:29am On Jan 03, 2017
Even Anti-malaria and antibiotics too. Chei Baba you are dull oo!
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by iamsmile(m): 7:29am On Jan 03, 2017
Can you ever be Happy in your Life?
malele:





Am not sure u people read the post well.
Let me ask these few questions.

DO u have light for production in nigeria?
Do u have storage systems in nigeria?
How do people get forex for production of SUVS and other antibiotics mentioned?
What prevents the government from puting a timeline to stop these imports?
Hope u people know tarrif for tokunbo cars increased too, how many people Have money to buy new cars?
Hope u people know minimum wage is 18k?

It unfortunate that goat of of president started 2017 like this.
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by AdeniyiA(m): 7:30am On Jan 03, 2017
Toketimt:


All these are ongoing and u will agree with me that even if we focus on this alone, we will still be on it for at least the next five yrs considering the comatose state they met them. The question is should other excellent initiatives stop till then? Nigerian entrepreneurs are already hailing this move. That is all that matters.
Few and far between were ongoing projects that eventually got to their intended destinations.
What price relieve do you intend getting from industries that run on generators for 24hrs¿?? shocked Nigeria is theatrical countryundecided
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by rickyrex(m): 7:31am On Jan 03, 2017
My take to this new year nonsense is what positive impact does it have on the common man. Even the rice they have been shouting about is no where to be found.
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by ekestic1976(f): 7:31am On Jan 03, 2017
God bless you.
Toketimt:


All these are ongoing and u will agree with me that even if we focus on this alone, we will still be on it for at least the next five yrs considering the comatose state they met them. The question is should other excellent initiatives stop till then? Nigerian entrepreneurs are already hailing this move. That is all that matters.

1 Like

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by nextstep(m): 7:32am On Jan 03, 2017
Toketimt:


Am sorry to say this but I will just be blunt because it's the plain truth.
If u av the resources to buy or thinking of buying a car even if it's a tokunbo, u are not part of the over 40% of Nigerians who are extremely poor. At least u can afford to eat well before thinking of buying a car.
Govt (fed and state because money collected goes to Federation account) needs more money and one of the best ways to source it is taxing luxury goods. As important a car is, it's still a luxury. U don't expect them to start taxing stuffs like garri and tomatoes. That's the norm worldwide.

So you're telling me that after struggling to gather 6 million to buy and clear car, I should have no problem coming up with another 2 million just because Mrs Adeosun and her boss want to "stimulate local production.

Yet will they turn around and generate more power and fix roads?

In addition, now I need yet more naira to satisfy a dollar import. Really smart these ppl in government.

The single thing govt should concentrate on is refinery capacity. Fix them and dollar pressure will ease. All this punitive taxes is not going to help. 1984 beckons: inflation will skyrocket in 2017 and there will be business shutdowns.

6 Likes 2 Shares

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by tete7000(m): 7:33am On Jan 03, 2017
Emjay1310:
Noted. But let the local manufacturers not see this as an avenue to increase the price of their own products too. And most importantly, quality is key to ensure local patronage. God bless Nigeria


Is it not the same market you buy from they buy? If you increase the prices of other essentials they need, why should they not increase the prices of their own commodities to be able to afford things and survive? They don't live on an isolated island. Price increment moves in circle, if you raise prices of essential foreign goods (like cars and drugs, salt, sugar for instance), it is certain local goods too will have their prices jack up. By what percentage? We need to wait and see.
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by Nobody: 7:33am On Jan 03, 2017
stupid plan. What is the difference between this and what the NCC planned last year. Most of this local producers are only good at manufacturing substandard goods. Besides every business should take competition in to consideration be it local or international. And this is not against the rich cos they will find a way to make the poor pay for it.
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by passyhansome(m): 7:35am On Jan 03, 2017
Toketimt:


Yes, viable and so many local pharmaceutical companies are in the country. Infact, this should be completely banned left to me.


You mean those Chalk, sub-standard drugs you produce in Nigeria, I bet you those supporting this policy don't know what they are in for, at this time when nothing seems working, I don't think Nigerians needs an additional hardship, No Light, No good road, Economy is fuckkked.
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by repogirl(f): 7:36am On Jan 03, 2017
malele:





Am not sure u people read the post well.
Let me ask these few questions.

DO u have light for production in nigeria?
Do u have storage systems in nigeria?
How do people get forex for production of SUVS and other antibiotics mentioned?
What prevents the government from puting a timeline to stop these imports?
Hope u people know tarrif for tokunbo cars increased too, how many people Have money to buy new cars?
Hope u people know minimum wage is 18k?

It unfortunate that goat of of president started 2017 like this.
help me ask them o....I don't know where the industries are in Nigeria that will produce these items cheap when the basic infrastructural needs have not been met.

They will just make stupid policies without considering that the system cannot meet up. All they have done now is just create scarcity and make things expensive because people need these items they will still buy it as there are no better alternatives. Even the prices of the local ones will increase because of a higher demand where supply cannot be met.

See indomie that is supposed to be a local product, one super pack from 80 naira has jumped to 100 naira and you say Mr. President is encouraging which stupid local industry? Common locally made indomie has become a luxury item now.

You don't need to ban or hike any duty, simply make the system conducive for manufacturers and people will naturally move to the locally made products because of its availability and competitive pricing. Forcing it will not bring about any good outcome.

I doubt they even know the difference between luxury and raw materials. The textile which they are hiking is a very vital part of the manufacturing industry but those dweebs see it as luxury. Our textile industries are dead and they are hiking fabric prices as if that will suddenly revitalise our own industries. We will see.

5 Likes 1 Share

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by nextstep(m): 7:37am On Jan 03, 2017
adedayoa2:
the light situation is fair enough, for the first time in my life, I visited Lagos and for 3 days, NEPA did not seize the light.

In your part of Lagos.

3 days out of 365 during holidays does not make a significant sample size. There is reduced industrial demand during the festive season.
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by nonjebose(m): 7:37am On Jan 03, 2017
linearity:


This is a very bad policy. Economic Protectionism is a bad policy. This myopic policy now exposes Nigeria exports to similar fate abroad, thereby hurting Nigeria produce in international markets.

The government should have look into helping the manufacturing section with constant power supply, good roads and access to capital/forex; these will enable them to be competitive.

No family or country grows whose policies or strategy is refined to produce just enough to consume internally without planning to sell externally and also maintain conditions and policies that will encourage external buyers.
Nigeria's export has always suffered protectionist policies of western european countries. Check out the trade imbalance we have with most of this countries. This policy is good, I am only hoping the timing would not pose a great challenges.
Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by delpee(f): 7:37am On Jan 03, 2017
12inches1:


To import and clear a 2015 car (which costs like 5million) before this was about 2 million. With this increase I guess it will be like 3 million (more than 50% the price) . I think Nigerians should all kuku start riding horses.

The same Kemi Adeosun that said the Govt would reduce import duties on cars to discourage importation thru cotonou. Then went ahead to increase. Hopeless and rudderless administration.

Increase cost of medication yet you go to UK for hear infection. Mr Integrity. You've not told us how much champagne u popped on Zahra's wedding.


Someone who is importing a 2015 vehicle is far from poverty. The idea is to tax the rich to generate more funds for projects that improve the quality of life of the poor and vulnerable.

4 Likes 1 Share

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by greatwhite(m): 7:37am On Jan 03, 2017
The real rich people know hw to import all the said item without paying a kobo. Dey der dey mumu yourself #Kolewerk

3 Likes

Re: FG Raises Import Duties On Luxury Goods, Food Items That Have Local Alternatives by loswhite(m): 7:37am On Jan 03, 2017
wristbangle:
Nice move and this should not affect the price of local goods because people are quick to inflate price of commodities when they hear this kind of news.
what affect prices? Demand and supply if the demand is above what local producers can supply the price will definitely go up. Do we have energy in this country? I hope it works out but the truth is not until the basic hindrance for local production which includes power and road infrastructure is tackled like a matter of urgency, much progress will not be made

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