Tough times lie ahead for Nigerians as FG’s new tariff regime begins in June 2022

Unbeknownst to Nigerians, tougher times lie ahead as the Federal Government has approved the implementation of a new tariff and tax regime on imported goods, primarily beverages, alcohol, telecommunication services, among others.

Most importers and their agents may also be unaware of the new federal government tax regime, through the Nigeria Customs Service (NCS) will commence the implementation of the new Supplementary Protective Measures (SPM) for the implementation of the ECOWAS Common External Tariff (CET) 2022-2026.

The federal government has granted 90 days of grace to all importers to clear their goods from ports, while the new tariff and tax regime comes into effect on June 1, 2022.

In the new regime as contained in a circular issued on 1 March 2022 by the Federal Ministry of Finance, Budget and National Planning and sent to strategic ministries, departments and agencies including the Nigeria Customs Service and the Service federal inland revenue, there is listed an upward and downward review of customs duties and taxes to be paid on imported goods from 2022 to 2026. Under the new CET, soft drinks, juices fruits, energy drinks, etc. will pay N10 per liter consumed, while beer, stout and other alcoholic beverages not made from malt – whether fermented or unfermented will pay N40 per liter in 2022, N45 per liter in 2023 and N50 per liter in 2024.

In addition, consumers of (alcoholic) wine will pay N40 per liter in 2022, N60 in 2023 and N70 per liter in 2024, while consumers of (alcoholic) spirits such as whisky, brandy, volka and rum will pay N40 per liter in 2022, N65 per liter in 2023 and N75 per liter in 2024.

For tobacco smokers, the new tax regime entails payment of 30% of N4.20k per cigarette stick in 2022 and is to be increased to N4.70k per stick in 2023 and N5.20k per stick. stick in 2024. Also for other expanded tobacco products for chewing, snuff etc. they will pay N1,000/kg and N3,000 per liter in 2022, N1,500/kg and N3,500 per liter and N2,000 N/kg and 4,000 N per liter in 2023 and 2024 respectively.

On the telecom service surcharge and all other services regulated by the Nigerian Communications Commission (NCC), Nigerians using both prepaid and postpaid products will pay 5% from 2022 to 2024.

The circular reads in part; “this confirms that His Excellency the President has approved the implementation of the 2022 Budget Policy Measures consisting of Supplementary Protective Measures (SPM) for the implementation of the ECOWAS Common External Tariff (CET) 2022-2026 and excise duties on Soft drinks, alcoholic beverages, cigarettes and tobacco products, as well as telecommunications services from April 1, 2022.

“The RID approved in accordance with the provisions of the ECOWAS CET includes the following annexes: I. List of import adjustment taxes (IAT) with additional taxes (levy) on 172 tariff lines of the ECOWAS CET in force ; Annex 1 II. List of Import Prohibitions (Trade), applicable only to certain goods originating from non-ECOWAS Member States; Annex

2, and III. National List Comprised of Items with Reduced Import Duty Rates to Promote and Stimulate Growth in Critical Sectors of the Economy, Annex 3.

  1. A staggered period of ninety (90) days from the date of this circular is granted to all importers, manufacturers and service providers before the implementation of the new excise duty rate attached IV. The new rate of excise duty on this circular will therefore take effect from June 1, 2022.
  1. In addition, a grace period of ninety (90) days, from the effective date of implementation of this circular, i.e. April 1, 2022, will be granted to all importers who have opened the ” M” and having entered into an irrevocable trade agreement prior to the entry into force of this Circular, to process and clear their goods at the prevailing duty rates. However, any new import operation concluded from April 1, 2022 will be subject to the new import duty regime.
  1. Finally, Mr. President approved the extension of tax policy measures to facilitate the importation of certain essential COVID-19 medical supplies in accordance with the indicative list recommended by the World Customs Organization (WCO) in collaboration with the World Health Organization (WHO).

The approved list of essential medical supplies exempt from payment of import duty and value added tax (VAT) with immediate effect until 31 December 2022 is attached as Annex V.

Exemption of these items from import duties and VAT is, however, subject to the importers obtaining a letter of support from the Federal Ministry of Health and a duty exemption certificate. import from the Federal Ministry of Finance, Budget and National Planning via the IDEC portal with the domain address: www. idec.gov.ng.

  1. This fiscal policy measure replaces the 2021 fiscal policy measures

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