In less than six weeks to the end of his tenure, President Muhammadu Buhari has approved new Import Adjustment Tax (IAT) levy on certain categories of new and used vehicles imported into the country.
The new taxes, which take effect from June 1, 2023, a day after the end of Buhari’s administration, was contained in a circular dated 20 April 2023 signed by Zainab Ahmed, Minister of Finance, Budget and National Planning.
Titled, ‘Approval For The Implementation Of The 2023 Fiscal Policy Measures And Tariff Amendments’, the circular spells out Import Adjustment Tax (IAT) levy on new and used passenger motor vehicles of 2000 cc to 3999 cc at 2 per cent and those of 4000cc and above at 4 per cent.
However, vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are exempted from the new levy.
The circular reads in part: “As part of Nigeria’s commitment to climate change adaptation and mitigation to environmental degradation, a Green Tax made up of excise duty on Single Use Plastics (SUPs) and Import Adjustment Tax (IAT) Levy is introduced on Motor Vehicles of 2000cubic centimetres (cc) and above.”
“The changes are effective from 1 May 2023 subject to 90-days grace period for importers who had opened Form M before 1 May 2023.”
Reacting, stakeholders of the nation’s auto industry, who spoke to Motoring World in anonymity, believe the new levy is of little benefit to the nation’s auto industry, as long as the President fails to sign into law the long overdue Auto Industry Development Plan policy (NAIDP)
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