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/

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!!

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

A good step in the right direction

well...

So they can buy 100m worth kitchen


APC!!! Shame!!!

This is commendable. I pray they also raise the tax of those mansions to raise funds for the poor masses.

Tax for chopping your own money...... OK... Still observing

Good idea.

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

FG raises tax on oxygen

This is a welcome idea. Instead of total ban increase in duties ll generate revenue, discourage import, encourage local production.

p=

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.

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.

Don't support increase in duty for antibiotics and essential drugs.

Salt?

Overdue and good

MrPresident1:
FG raises tax on oxygen

Na Die Be that Na

See as zombies rush defend their leader. A country that cannot produce toothpick is raising duty on everything.

kai Mr Man Comments your Reserve,speak for urself. i reserve my Comments

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!!

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.

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?

Good one here.

Nma27:
Salt?

To encourage local production I guess

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.

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

We are watching

Atiku2019:



Na Die Be that Na

All this one na preamble, they will raise the tax very soon

crisycent:
See as zombies rush defend their leader. A country that cannot produce toothpick is raising duty on everything.

Which country cannot produce toothpick?

Atiku2019:



To encourage local production I guess

Cool

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).