Global

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  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/15/2012

Nigeria - Tax measures in 2013 budget 

October 15:   Nigeria’s president on 10 October 2012 presented the 2013 federal government budget before a joint session of the National Assembly.

Among the tax measures in the 2013 budget are proposals relating to sugar production that would:


  • Impose a 0% rate of customs duty on machinery and spare parts imported for local sugar manufacturing
  • Provide a five-year tax holiday for “sugarcane to sugar” value chain investors
  • Impose an import duty at a rate of 10% and a “levy” at a rate of 50% on imports of raw sugar
  • Impose a 20% duty and 60% levy on refined sugar

Other budget measures would:


  • Impose a 10% import duty and 100% levy on brown and polished rice
  • Provide a 0% rate of customs duty and a 0% rate of value added tax (VAT) on commercial aircraft and aircraft spare parts imported for use in Nigeria
  • Provide a 0% rate of import duty and a 0% rate of VAT on machinery and equipment imported for use in the “solid minerals sector”
  • Reduce the customs rate from 5% to 0% with respect to “completely knocked down” components used in the production of mass transit vehicles

Read an October 2012 report [PDF 88 KB] prepared by the KPMG member firm in Nigeria: Budget proposals in Nigeria




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