New Telegraph

Import Duty: FG hikes tariff on rice, wheat, others

The Federal Government has disclosed that it is reviewing the Import Adjustment Tax (IAT) upward on key agro commodities, including rice, wheat, and others being imported into the country.

The Minister of Finance, Bud- get and National Planning, Hajiya Zainab Ahmed, in a document titled “Revised Import Adjust- ment Tax (IAT) for ECOWAS CET (2022-2026), 2023 Financial Coverage Measures,” cited by New Tele- graph, said the 2023 updated document increased the price on rice packaging weighing more than 5kg or in bulk, as well as packing weighing 5kg or less, from 50 per cent to 60 per cent.

In a similar vein, imports of wheat or meslin flour now carry 70 per cent tariffs as opposed to 50 per cent in the ECOWAS CET 2022–2026. The document reads: “This is to verify that his excellency Mr. President has authorised for the implementation of the 2023 financial measures consisting of Supplementary Protection Measures (SPMs) for the implementation of ECOWAS Common External Tariff 2022-2026 and revised excise duty charge on alco- holic beverages, cigarettes and tobacco products in addi- tion to introduction of excise duty on Single Use Plastics (SUPs).”

Recall that, last year, President Muhammadu Buhari authorised the initiation of 2022 Fiscal Policy Measures, which included Supplementary Protection Measures (SPMs), as part of the implementation of the ECOWAS Common External Tariff (ECOWAS CET) for 2022 – 2026. It commenced April 1, 2022, stating that excise taxes would be charged on products such as non-alcoholic drinks, alcoholic drinks, cigarettes and tobacco products, and telecommunications services. Accordingly, the revised excise duty rate on alcoholic beverages and tobacco products will take effect from June 1, 2023, and will be reviewed upward by June 1, 2024. “The excise duty on single use plastics (SUP) will also take effect on June 1, 2023,” the memo stated.

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