June 23, 2024

Tinubu suspends import taxes on cars, plastics, others

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Tinubu suspends import taxes on cars, plastics, others

President Bola Ahmed Tinubu has reversed some of the taxes imposed in the last-minute Fiscal Policy Measures (FPM) which was signed by former President Muhammadu Buhari, saying he will not suffocate Nigerians.

The taxes were stepped down in an Executive Order by the president on Thursday, July 6, 2023.

The taxes include the suspension of the controversial 5 per cent Excise Tax on Telecommunications services; the 10 per cent Green Tax by way of Excise Tax on Single Use Plastics and the suspension of the Import Tax Adjustment levy on certain vehicles.

Buhari’s Finance Minister, Zainab Ahmed, had in a circular reference number, HMFBNP/MDAs/CIRCULAR/2023FP//04 and titled, ‘Approval For The Implementation Of The 2023 Fiscal Policy Measures And Tariff Amendments,’ introduced the tax which took effect June 1, 2023.

The FMP signed by Buhari introduced additional excise taxes ranging from 20 per cent to 100 per cent increase on previously approved rates for alcoholic beverages, tobacco, wines and spirits have been introduced effective from 1 June 2023.

These are above the 2022 FPM’s approved Roadmap for 2022-2024 in the form of new and higher ad-valorem excise duties and specific rates while the excise duty rate on non-alcoholic beverages was retained at of N10 per litre.

On the Green Taxes, the FG will charge by way of excise duty on Single Use Plastics (SUPs) like plastic containers, films and bags at the rate of 10 per cent.

There is also an Import Adjustment Tax (IAT) levy that was introduced on motor vehicles of 2000 cc to 3999 cc at 2 per cent.

For vehicles of 4000cc and above, the tax will be 4 per cent while vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are exempted.

The president in the statement issued through his Special Adviser, Special Duties, Communication and Strategy, to the President, Dele Alake, said the orders are issued to ameliorate the negative impacts of the tax adjustments on businesses and chokehold on households across affected sectors.

The statement partly reads; “Further to his commitment to creating a business-friendly environment, the President has ordered the suspension of the newly introduced Green Tax by way of Excise Tax on Single-Use Plastics, including plastic containers and bottles.

“In addition, the President has ordered the suspension of the Import Tax Adjustment levy on certain vehicles.

As a listening leader, the President issued these orders to ameliorate the negative impacts of the tax adjustments on businesses and chokehold on households across affected sectors.

“His Excellency will not exacerbate the plight of Nigerians.”

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