FG Introduces New Taxes on Beer, Imported Vehicles, Plastics

The Federal Government of Nigeria has recently introduced new taxes on beer, imported vehicles, and single-use plastics while also expanding the list of prohibited items for importation. As per the latest directives, the government will levy a charge of N75 per liter on imported beer or stout in the country.

The Federal Ministry of Finance Budget and National Planning quietly issued a circular (HMFBNP/MDAs/circular/2023FP/04) to all Ministries, Departments and Agencies on April 20, 2023 informing them of the new developments.

The Minister of Finance, Zainab Ahmed, says N75 per litre will be charged on beer and stout including all alcoholic beverages and beer not made from malt- whether fermented or not fermented in 2023. This new excise duty on beer and stout will be increased to N100 per litre in 2024 and the same excise rate for beer will be applied to the importation of wine.

Previously, the government used valorem rates to tax imported alcoholic beverages, which were proportional to the estimated value of the goods or transaction. However, the new rates are now specific instead of estimated.

In line with the tax laws, vehicles with a two-liter engine will be subject to a two percent Import Adjustment Tax (IAT), while those with a four-liter engine or larger will be subject to a four percent IAT, effective from June 1, 2023.

Leave a Reply

Your email address will not be published.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

Next Post

FG Appeals for Patience on Lagos-Ibadan Expressway Reconstruction Work

Sun Apr 30 , 2023
  With the Lagos-Ibadan Expressway’s reconstruction nearing completion, the Federal Government is requesting the cooperation and comprehension of drivers due to the heavy traffic on the Toll Gate to Kara Bridge section in Lagos. In a Press Release issued by his Special Adviser on Communications, Mr. Hakeem Bello, the Honorable […]

You May Like