Economists, business stakeholders, and policy analysts have responded to the Federal Government’s plan to lower import taxes on cars, rice, and other important commodities as part of its 2026 fiscal strategy in a variety of ways that highlight the intricate trade-offs included in the reform.
A revamped national tariff regime covering 127 commodities is introduced by the policy, which was announced by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
The government said in a circular signed by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, that the 2023 fiscal guidelines will be replaced by the new policy framework.
Reductions in importation of necessary foods were also introduced by the policy. Crude palm oil imports will be subject to an effective charge of 28.75 percent, while raw sugar tariffs now range between 55 and 57.5 percent, both representing reductions from previous rates. Broken rice is now set at 30 percent, while bulk rice tariffs have decreased from 70 percent to 47.5 percent.
Refined salt tariffs have also been lowered to 55%, while steel items and ceramic tiles are also subject to lower charges. Cold-rolled steel with low carbon content is set at 15 percent, while steel products, such as zinc-coated sheets and rods, are typically fixed at 35 percent.
The government authorized zero import taxes on industrial and agricultural machinery, cargo ships, railroad locomotives, and breathing apparatus in order to promote industrial growth. There is a ninety-day grace period for importers to clear goods at the previous rates if they started operations prior to April 1.
On July 1, 2026, a new excise duty system and green tax surcharge will go into effect. However, automobiles under 2000cc, electric vehicles, public transit buses, and domestically produced auto parts are exempt, indicating a change in policy toward domestic production and cleaner transportation.
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