FG raises import duties on luxury items, consumables including alcoholic spirits, beverages

The Federal Government has raised import duties on luxury goods such as yachts and sport utility vehicles (SUVs) brought into the country, but also included are alcoholic spirits, beverages and tobacco whose tariffs have risen from 20% to 60%.

The government circular further said that essential industrial sector accessories, including bolt, industrial oil and other equipment will see their tariff rates fall to spur local industrialization.

According to the Minister of Finance, Adeosun, Buhari has already signed-off on 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.”

The circular 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Adeosun declared that the current fiscal policy measures superseded those of 2015, and advised the customs and other stakeholders to ensure strict compliance.

Please note that the Federal Government issued a statement on Friday January 6, 2017 stating that no tariff increases on food items and luxury goods were implemented.

This article was recently updated on January 7, 2017 at 11:00am

You may also like:

Leave a Reply

Your email address will not be published. Required fields are marked *