There is palpable tension in the maritime industry over the federal government’s introduction of new set of taxes on imported vehicles, alcoholic beverages, single use plastics, rice, wheat, among others.
To this end, stakeholders and motor dealers have kicked against the new taxes, saying the new policy would send many people out of business and induced job loss in the sector.
LEADERSHIP gathered that under the new tax regime, made available to LEADERSHIP, titled, ‘Approval for the Implementation of the 2023 Fiscal Policy Measure and Tariff Amendment, by the Federal Ministry of Finance, Budget and National Planning,’ and sent to some ministries and government agencies, imported vehicles with 2000cc (2 litres) to 3999cc (3.9 litres) engine will pay an additional charge known as Import Adjustment Tax (IAT) levy of two per cent of the value of the vehicle while vehicles with 4000cc (4 litres) and above engines will attract IAT of four per cent of their value.
The new levy is in addition to the 35 per cent import duty and 35 per cent levy being paid by importers of vehicles.
However, vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are exempt from the IAT levy.
Speaking to our Correspondent on Sunday over the introduction of the new tax policy, the President, United Berger Motor Dealers Association (UNBMDA), Metche Nnadiekwe, said the new taxes would cripple imported used vehicles sector in the country.
According to him, with the introduction, the prices of used vehicles would be above the reach of middle class Nigerians.
“For me I don’t understand this type of thing. The implication is that it is not only the people who are into auto business that will feel the impact of the new levy but the whole Nigerians. Some investors will leave the business because they are unable to cope with the increment because by the time they use the new tariff to clear their vehicles, they will include the money into the vehicles at point of sales. The buyers who are middle-class Nigerians will be the one to suffer it more. So I don’t understand this type of a thing,” he said.
LEADERSHIP reports that the Federal Government would also charge N75 per litre of beer, stout and wine imported into the country in 2023 and N100 per litre in 2024.
Before the new tax regime, the government taxed imported alcoholic beverages and valorem i.e. levying of tax or customs duties proportionate to the estimated value of the goods or transaction concerned.
The government has also revised the import prohibition list with the inclusion of used motor vehicles above 12 years from the year of manufacture, paracetamol tablets and syrups, cotrimozazole tablets and syrups, metronidazole tablets and syrups and chloroquine tablets and syrups.
Also included on the list are folic acid tablets, vitamin B complex tablets (except modified release formulations), multivitamin tablets, capsules and syrups (except special formulations) and aspirin tablets (except modified release formulations and soluble aspirin).
Others are magnesium trisilicate tablets and suspensions, piperazine tablets and syrups, levamisole tablets and syrups, ointments penicillin/gentamycin, pyrantel pamoate tablets and syrups, intravenous fluids (dextrose, normal saline etc), waste pharmaceutiques and mineral or chemical fertilisers containing the three fertilising elements – nitrogen, phosphorus and potassium.
Government also introduced a green tax by way of excise duty on single use plastics including plastic containers, films and bags at the rate of 10 percent.
According to a circular issued by the Federal Ministry of Finance, Budget and National Planning and addressed to all Ministries, Departments and Agencies on April 20, 2023, the new tax regime comes into effect on June 1, 2023.“It is pertinent to note that the tenor of loans under the ABP is based on the commodity gestation period. For instance, loans granted to farmers cultivating some perennial crops could have up to seven-year tenor,” he explained.
Dr. Isa emphasised that the bank’s interventions, with the core objective of catalysing the economy’s productive base, have continued to support investments in capital assets in sectors with high-growth and employment-elastic potential.
“The Central Bank of Nigeria remains committed to its developmental mandate of stimulating access to finance for the real sector, particularly agriculture, as it continues to support the federal government’s drive for food security and economic growth. Accordingly, the Central Bank of Nigeria continues to welcome applications from eligible Nigerian farmers and firms under the Anchor Borrowers’ Programme,” he added.
