Hard Times Await Nigerians As FG’s New Tariff Regime Begins In June 2022 – Legitpost.com.ng
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Hard Times Await Nigerians As FG’s New Tariff Regime Begins In June 2022

Unknown to Nigerians, more hard times awaits them as the Federal government has approved the implementation of a new tariff and tax regime on imported goods, mainly beverages, alcohol, telecommunication services among others.

Most importers and their agents may not also be aware of the Federal government’s new tax regime, through the Nigeria Customs Service (NCS) will begin the implementation of the new Supplementary Protection Measures (SPM) for the implementation of the ECOWAS Common External Tariff ( CET) 2022-2026.

The Federal government has granted 90 days grace for all importers to clear their goods from the ports, while the new tariff and tax regime takes effect from June 1, 2022.

In the new regime as contained in a circular issued on the March 1, 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 Federal Inland Revenue Service, it’s listed a upward and downward review of tariff and taxes to be paid on imported goods from 2022 to 2026. Under the new CET, non alcoholic beverages, fruit juice, energy drinks etc will pay N10 per litre consumed, while beer and stout and other alcoholic drinks not made from malt – whether fermented or not fermented will pay N40 per litre in 2022, N45 per litre in 2023 and N50 per litre in 2024.

Also wine (alcoholic) consumers will pay N40 per litre in 2022, N60 in 2023 and N70 per litre in 2024, while spirit (alcoholic) consumers like whisky, brandy, volka and rums will pay N40 per litre in 2022, N65 per litre in 2023 and N75 per litre in 2024.

For tobacco smokers, the new tax regime attracts payment of 30 per cent of N4.20k per stick of cigarette in 2022 and to be increased to N4.70k per stick in 2023 and N5.20k per stick in 2024.Also for other expanded tobacco products like chewing, snuffing etc, they will pay N1, 000/kg and N3, 000 per litre in 2022, N1500/kg and N3500 per litre and N2, 000/ kg and N4, 000 per litre in 2023, 2024 respectively.

On telecommunication services surcharge and all other services regulated by the Nigerian Communication Commission (NCC), Nigerians using both prepaid and postpaid products will pay 5 per cent from 2022 through to 2024.

The circular reads in part; “this is to confirm that His Excellency, Mr. President has approved the implementation of the 2022 Fiscal Policy Measures made up of Supplementary Protection Measures (SPM) for the implementation of the ECOWAS Common External Tariff (CET) 2022 – 2026 and excise duties on Non-Alcoholic Beverages, Alcoholic Beverages, Cigarettes, and Tobacco Products, as well as Telecommunication Services with effect from 1st April 2022.

“The approved SPM in line with the provision of the ECOWAS CET comprises the following annexes: I. Import Adjustment Tax (IAT) list with additional taxes (Levy) on 172 Tariff lines of the extant ECOWAS CET; Annex 1 II. Import prohibition list (Trade), applicable only to certain goods originated from Non- ECOWAS member states; Annex

2, and III. National list consisting of items with reduced import duty rates to promote and stimulate growth in critical sectors of the economy, Annex 3.

A grade period of ninety (90) days commencing from the date of this circular is here- by granted to all importers, manufacturers, and service providers before the implementation of the new excise duty rate attached herewith as Annex IV. The new excise duty rate on this circular shall therefore take effect from 1st June 2022.
In addition, a grace period of ninety (90) days, commencing from the effective date of implementation of this circular, i.e, 1st April 2022, shall be granted to all importers who had opened form ‘M’ and must have entered into irrevocable trade agreement before the coming into effect of this circular, to process and clear their goods at the prevailing duty rates. However, any new import transaction entered from the 1st of April, 2022, shall be subjected to the new import duty regime.
Lastly, Mr. President approved the extension of the fiscal policy measures to facilitate the importation of some COVID-19 essential medical supplies in line with the indicative list recommended by the World Customs Organization (WCO) in conjunction with the World Health Organisation (WHO).
The approved list of critical medical supplies exempted from payment of import duty and Value Added Tax (VAT) with immediate effect, up till 31st December 2022 are herewith attached as Annex V.

The exemption of these items from import duty and VAT is however subject to importers obtaining a letter of support from the Federal Ministry of Health and Import Duty Exemption Certificate from the Federal Ministry of Finance, Budget and National Planning through the IDEC Portal with domain address: www. idec.gov.ng.

This Fiscal Policy Measure supersedes the 2021 Fiscal policy Measures

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