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By Ayo Kehinde
The federal government has reduced the import levy on new vehicles from 20% to 10% and on used vehicles from 15% to 5% as part of the 2026 tax policy measures.
The policy, which came into effect on July 1, aims to reduce the cost of importing vehicles and make cars more affordable for Nigerians.
The new tax measures are part of a broader overhaul of Nigeria’s import tariff structure and customs regime designed to stimulate economic activity, facilitate trade and increase the ease of doing business.
Under the revised policy, importers of new vehicles will now pay an import duty of 10% instead of the previous 20%, while the levy on used vehicles has been reduced to 5% from the previous 15%.
The federal government said the policy is expected to reduce the overall cost of importing vehicles into the country, provide relief to businesses engaged in importing cars and ultimately make vehicles more affordable for consumers.
Announcing the measure, the government said the Nigeria Customs Service (NCS) will begin implementing the revised import levies alongside a recently introduced green tax surcharge.
“Effective July 1, 2026, the Nigeria Customs Service will implement the Green Tax Surcharge as part of the 2026 tax policy measures to support environmental sustainability, while reducing the import levy on new vehicles from 20% to 10% and that on used vehicles from 15% to 5% to alleviate vehicle importation costs,” the government said.
According to the government, the Green Tax Surcharge is aimed at promoting environmental sustainability, while the reduction of levies on vehicle imports aims to encourage trade, support businesses and ease the financial burden on vehicle importers.
The revised tariff regime is part of the Federal Government’s broader tax reforms aimed at improving the efficiency of Nigeria’s customs administration, promoting economic growth and creating a more business-friendly import environment.
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