'N75 per litre': Beer, Tokunbo Cars, Phone Calls, Others to Get More Expensive as FG Introduces New Taxes
- The federal government has announced new taxes that will lead to an increase in prices of beer, tokunbo cars, phone calls
- The taxes include N75 per liter of beer or stout imported into Nigeria, Import Adjustment Tax (IAT)
- The government has also revised taxes on mobile telephone services (GSM), and internet services
The Federal Government of Nigeria has introduced a new set of taxes on various items, including beer, imported vehicles, and single-use plastics.
The new taxes include a charge of N75 per litre for imported beer or stout in Nigeria.
Source: Facebook
According to the Nation, Minister of Finance Zainab Ahmed has announced that a charge of N75 per litre will apply to all alcoholic beverages and non-malt beers, regardless of fermentation, starting in 2023.
The excise duty on beer and stout will increase to N100 per litre in 2024. Previously, imported alcoholic beverages were taxed using valorem rates based on estimated value, but now a specific rate has been introduced.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Wine will also be subject to the same excise rate as beer for importation purposes.
More new taxes on vehicles, parts
Starting from 1st June 2023, vehicles with engine sizes of 2 liters will incur a 2% Import Adjustment Tax (IAT), while those with 4 liters and above will be subject to a 4% IAT, as per the tax laws.
On April 20, 2023, the Federal Ministry of Finance Budget and National Planning issued a circular to all Ministries, Departments, and Agencies, informing them of these changes.
Moreover, Single Use Plastics (SUPs) such as plastic containers, films, and bags will be taxed at a rate of 10% through a new Green Tax that will be imposed as an excise duty.
The IAT levy on motor vehicles has also been revised, with 2% tax being imposed on vehicles with engine sizes between 2000 cc and 3999 cc, while vehicles with engine sizes of 4000 cc and above will be subject to a 4% tax.
However, vehicles with engine sizes below 2000cc, mass transit buses, electric cars, and locally manufactured vehicles will be exempted from this tax. These changes will be effective from 1st June 2023.
More tax changes
The circular to the ministries also highlighted the introduction of a 5% excise duty on telecommunication services, which was approved by the President and prescribed in the Official Gazette No. 88, Vol. 109 of 11 May 2022, as per the Finance Act 2020.
Going forward, this tax will apply to mobile telephone services (GSM), fixed telephone, and both postpaid and prepaid internet services.
Finally, the circular mentioned that the Supplementary Protection Measures (SPM) related to implementing the ECOWAS Common External Tariff 2022-2026 would be effective from 1 May 2023.
However, importers who had opened their businesses within the last 90 days will be given a grace period.
Economists counter Buhari's claim Nigerian economy is better under him
Meanwhile, Economists, Industrialist and Manufacturers have questioned President Buhari's claim Nigeria's economy is better under him
Buhari had in an interview granted to international media firm, Bloomberg spoke about the successes of said his administration
The president also stated that he is leaving Nigeria’s economy better than he met it in 2015 when he assumed office
Source: Legit.ng
