The Federal Government has approved the implementation of the 2026 Fiscal Policy Measures, FPM, introducing sweeping changes to import tariffs aimed at stimulating growth across key sectors of the economy.
The approval was conveyed in a document dated April 1, 2026,
and signed by the Minister of Finance, Wale Edun. The new policy replaces the
2023 FPM.
A major highlight of the policy is the review of import
duties across 127 tariff lines, covering items such as rice, sugar, vehicles,
and industrial inputs. The government said the reductions are designed to
“promote and stimulate growth in critical sectors of the economy”.
Under the revised regime, the Import Adjustment Tax, IAT, on
products like crude palm oil has been set at a total effective rate of 28.75
percent, down from higher rates under previous tariff structures.
In the automotive sector, tariffs on fully built passenger
vehicles, including four-wheel drives and station wagons, have been reduced to
40 percent from 70 percent as stipulated in the 2015 FPM.
To ease the transition, the government granted a 90-day
grace period for importers who opened Form ‘M’ before April 1, allowing them to
clear goods at the old rates.
However, the policy also introduces a new excise duty regime
alongside a green tax surcharge, both scheduled to take effect from July 1,
2026.
Key Tariff Adjustments:
Here is a summary of details of the gazetted list outlining
revised duties on several goods:
Antimalarial medicaments: 20%
Rice (bulk or >5kg): 47.5% (from 70%)
Broken rice: 30% (from 70%)
Wheat or meslin flour: 70%
Crude palm oil: 28.75% (from 35%)
Raw cane sugar: 55% (from 70%)
Cane/beet sugar (powder/granule): 57.5% (from 70%)
Margarine (excluding liquid): 40%
Refined salt: 55% (from 70%)
Envelopes: 40% (from 50%)
Diaries/notebooks: 30% (from 40%)
Unglazed ceramic tiles: 35% (from 40%)
Glazed ceramic tiles: 46.25% (from 55%)
Ceramic cubes (<7 cm): 35% (from 40%)
Steel and Industrial Inputs
Zinc-coated steel sheets: 35% (from 45%)
Aluminum-coated steel coils: 35% (from 45%)
Electroplated steel: 35% (from 45%)
Cold-rolled steel (<0.25% carbon): 15% Hot-rolled
deformed steel bars: 35% (from 45%) Steel rods (5.5mm–14mm): 35% (from 45%)
Other Key Adjustments: Electrical apparatus (e.g., fuses): 10% (from 20%)
Railway/tramway locomotives (SKD/CKD): 0% (from 5%) Cargo ships (>500
tonnes): 0% (from 5%)
Breathing appliances and gas masks: 0% (from 5%)
Agricultural and manufacturing machinery: 0% (from 5%)
Modular surgical operating theaters: 5% (from 20%)
Air/vacuum pumps and compressors: 5% (from 10%)
Automatic circuit breakers: 10% (from 20%)
Lamp holders: 10% (from 20%)
Green Tax Exemptions:
The policy also outlines categories exempted from the
planned green tax surcharge. These include –
Vehicles below 2000cc
Mass transit buses (heading 87.02)
Electric vehicles
Locally manufactured vehicles under specified headings
(87.06–87.13)
The government said the overall reforms are part of efforts
to balance revenue generation with economic stimulation, while supporting local
industries and easing the cost of critical imports.
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