New import tariff in nigeria 2017

In 2017, the Nigerian government introduced a new import tariff regime, which aimed to increase revenue and promote local production. Here are some key details about the new import tariff in Nigeria in 2017:

Tariff Regime: The Nigerian government introduced a new tariff regime, known as the "Import Duty and Value Added Tax (VAT) Act, 2017". This regime replaced the previous tariff regime, which was in place since 1993.

Tariff Rates: The new tariff regime introduced a range of tariff rates, from 0% to 35%. The rates were categorized into three bands:

  1. Band 1: 0% to 5% - This band included essential goods such as food, medicine, and other essential items.
  2. Band 2: 5% to 20% - This band included intermediate goods, such as raw materials and machinery.
  3. Band 3: 20% to 35% - This band included finished goods, such as consumer goods and luxury items.

Key Changes:

  1. Increase in Tariff Rates: The new tariff regime introduced higher tariff rates for many goods, with some rates increasing by as much as 50%.
  2. Introduction of Ad Valorem Tariff: The new regime introduced an ad valorem tariff, which is a tariff based on the value of the goods being imported. This replaced the previous specific tariff, which was based on the quantity of goods being imported.
  3. Exemptions: The new regime introduced exemptions for certain goods, such as goods imported by the government, goods for humanitarian purposes, and goods for the production of goods that are exempt from tariffs.
  4. Phased Implementation: The new tariff regime was implemented in phases, with the first phase covering goods with tariff rates of 0% to 10%. The second phase covered goods with tariff rates of 10% to 20%, and the third phase covered goods with tariff rates above 20%.

Impact:

  1. Increased Revenue: The new tariff regime was expected to increase revenue for the Nigerian government, as higher tariff rates would lead to increased revenue from imports.
  2. Protection of Local Industry: The new regime aimed to promote local production by making imported goods more expensive and encouraging consumers to buy locally produced goods.
  3. Inflation: The increase in tariff rates was expected to lead to inflation, as the cost of imported goods would increase, leading to higher prices for consumers.
  4. Compliance Challenges: The new regime introduced new compliance requirements for importers, including the need to obtain a tariff classification and pay duties and VAT.

Overall, the new import tariff regime in Nigeria in 2017 aimed to increase revenue, promote local production, and protect the local industry. However, it also introduced challenges for importers and consumers, including increased costs and compliance requirements.