Tariff Increase: Nigerians To Pay More For Imported Goods.
The Federal Government has raised duties on luxury goods such as yachts and Sport Utility Vehicles (SUVS) imported into the country. This move is not unconnected to Federal Government’s move to ensure Nigerians patronise locally made goods and to boost local production.
This was contained in a circular by the minister of finance, Kemi Adeosun, to the Nigeria Customs Service.
Some luxury and consumable items that have local alternatives but are imported into the country will be attracting higher import duties. This means that there might be a rise in the prices of some consumable goods until the demand for them is met locally.
Below are the goods which will be attracting higher tariffs.
1.) SUVs, boats, sports cars and other vessels used for pleasure
The import duty for yachts and other luxury automobiles has been increased from 20% to 70%. Importers of these are now to pay 70% of the value of the vehicles as taxes (duties) to the Nigeria Customs Service (NCS).
Meanwhile, duties for used cars popular known as Tokunbo, has been increased from 10% to 35%.
2.) Sugar cane and salt
The import duty for sugar cane and salt which used to be 10% has now been increased to 70%.
3.) Alcoholic spirit, beverages and tobacco
FG increased tariff on imported goods Importers of alcoholic spirit, beverages and tobacco are now to pay 60% of the value of the goods. The new rate is a jump from the 20% which they currently enjoy.
4.) Cotton and fabrics materials
The 35% enjoyed by importers has been increased to 45%.
FG increases import duties on luxury goods The federal government has increased the tariff on imported rice from 10% to 60%.
6.) Packaged cement
It has been increased from 10% to 50%.
7.) Some drugs such as anti-malarial and antibiotics, crude palm oil, wheat flour, tomatoes paste, and cassava products are also affected in the upward review of duties.
This increase is coming on the heels of the recent ban on all vehicle imports through the land borders in the country. This is part of measures by the federal government to curb smuggling of particularly used cars into the country.