Nigerian Government Introduces New Taxes On Beer, Imported Vehicles, Plastics, Others
The Nigerian government under the administration of President Buhari has introduced a new set of taxes on alcoholic beverages, imported vehicles, plastics, and others.
This development which will make Nigerians pay more is coming with barely a few days to the end of his eight-year tenure in office.
This disclosure is contained in the new Fiscal Policy Measures (FPM) for 2023 in a Circular dated April 20, 2023, and signed by the Minister of Finance, Budget and National Planning, Zainab Ahmed.
Details of the new tax regime contained in the new Fiscal Policy Measures (FPM) documents and approved by President Muhammadu Buhari were disclosed by Mr. Taiwo Oyedele of PricewaterhouseCoopers on his official Twitter account.
The Federal Government will now charge N75 per litre of beer or stout imported into Nigeria. Minister of Finance, Zainab Ahmed said that N75 per litre will be charged on “beer and stout including all alcoholic beverages and beer not made from malt- wether fermented or not fermented” in 2023. This new excise duty on beer and stout will be increased to N100 per litre in 2024.
Before the new rates, the government taxed imported alcoholic beverages using valorem rates- levying of tax or customs duties) proportionate to the estimated value of the goods or transaction concerned. Now there is a specific rate, not an estimate.
The same excise rate for beer will be applied to the importation of wine. Under the tax laws, two litre engine vehicles will attract an Import Adjustment Tax (IAT) of two percent while vehicles with four litre engines and above will attract a four percent IAT with effect from 1 June 2023.
