FG Cuts New Vehicle Import Levy to 10%, Used Vehicles to 5% – THISAGE

By  Ayo Kehinde

The Federal Government has reduced the import levy on new vehicles from 20 per cent to 10 per cent and on used vehicles from 15 per cent to five per cent under its 2026 Fiscal Policy Measures.

The policy, which took effect on July 1, is aimed at lowering the cost of vehicle importation and making automobiles more affordable for Nigerians.

The new fiscal measures form part of a broader review of Nigeria’s import tariff structure and customs regime designed to stimulate economic activity, facilitate trade, and enhance the ease of doing business.

Under the revised policy, importers of new vehicles will now pay a 10 per cent import levy instead of the previous 20 per cent, while the levy on used vehicles has been reduced to five per cent from the former 15 per cent.

The Federal Government said the policy is expected to lower the overall cost of importing vehicles into the country, provide relief to businesses engaged in automobile importation, and ultimately make vehicles more affordable for consumers.

Announcing the measure, the government said the Nigeria Customs Service (NCS) would begin implementing the revised import levies alongside a newly introduced Green Tax Surcharge.

“Beginning 1st July 2026, the Nigeria Customs Service will implement the Green Tax Surcharge as part of the 2026 Fiscal Policy Measures to support environmental sustainability while also reducing the import levy on new vehicles from 20% to 10% and that of used vehicles from 15% to 5% to ease the cost of vehicle importation,” the government stated.

According to the government, the Green Tax Surcharge is intended to promote environmental sustainability, while the reduction in vehicle import levies is aimed at encouraging trade, supporting businesses, and easing the financial burden on vehicle importers.

The revised tariff regime is part of the Federal Government’s broader fiscal reforms targeted at improving the efficiency of Nigeria’s customs administration, promoting economic growth, and creating a more business-friendly import environment.

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