28 to end of tenure, President Buhari hurriedly hikes taxes, rigid importion of products

Abuja, NIGERIA — Barely 28 days to May 29 handover date to the new government, Nigeria President Muhammadu Buhari has revised list of imports that were prohibited.

Among banned items are chloroquine tablets and syrup, paracetamol tablets and syrup, cotrimoxazole tablets and syrup, folic acid tablets, metronidazole tablets and syrups, and tablet and syrup forms of paracetamol.

Folic acid tablets, vitamin B complex tablets (aside from modified release formulations), multivitamin tablets, capsules, and syrups (aside from special formulations), and aspirin tablets (aside from modified release formulations and soluble aspirin) are also on the list.

Others include waste pharmaceuticals, 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.), and mineral or chemical fertilisers containing the three fertilising elements – nitrogen, phosphorus, and potassium.

The federal government also introduced a new set of taxes on imported vehicles.

The new tax system goes into effect on June 1, 2023, per a circular sent to all Ministries, Departments, and Agencies on April 20, 2023 by the Federal Ministry of Finance, Budget, and National Planning.

According to the new tax law, imported vehicles with engines ranging in size from 2000cc (2 litres) to 3999cc (3.9 litres) will be subject to an additional tax known as Import Adjustment Tax (IAT), which is levied at a rate of 2 per cent of the vehicle’s value for engines ranging in size from 4000cc (4 litres) and above.

The new charge is in addition to the 35 per cent import duty and 35 per cent levy that car importers already pay.

In contrast, the IAT levy does not apply to vehicles with engines smaller than 2000cc, public transportation buses, electric vehicles, or automobiles made locally.

Additionally, the federal government will charge N75 per litre for imported wine, stout, and beer in 2023 and N100 per litre in 2024.

Prior to the implementation of the new tax system, imported alcoholic beverages were subject to ad valorem taxation, which entails the imposition of tax or customs duties proportional to the estimated value of the goods or transaction in question.

The Buhari  regime also instituted a 10 per cent  excise duty on single-use plastics like plastic bags, films, and containers as a green tax.