The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has officially sanctioned the commencement of the 2026 fiscal policy measures. This includes substantial adjustments to import tariffs on around 30 different product categories.
The core objective of this revised policy is to "promote and stimulate growth in critical sectors of the economy." It encompasses a list of 127 tariff lines where import duty rates have been lowered.
According to a circular dated April 1, 2026, these new Fiscal Policy Measures (FPM) supersede the policies that were in effect in 2023.
Specifically, the import adjustment tax (IAT) on goods such as crude palm oil has been set at a total effective rate of 28.75 percent, marking a decrease from previous higher tariff levels.
Furthermore, fully-built units of passenger motor vehicles, four-wheel drive vehicles, and station wagons will now be subject to a total effective tariff of 40 percent. This represents a significant reduction from the 70 percent rate stipulated in the 2015 fiscal policy measures.
The circular also provided a 90-day grace period for importers who had already initiated their Form ‘M’ before April 1. This allowance is to enable them to clear their goods under the previously applicable rates.
However, a new excise duty framework and a green tax surcharge are scheduled to take effect from July 1, 2026.
Among the items affected by tariff adjustments detailed in the official gazette are anti-malarial medicines (now 20 percent), and rice (in bulk or packaged in 5kg bags), which now attracts a 47.5 percent rate, down from 70 percent.
Broken rice tariffs have also been reduced to 30 percent from the previous 70 percent, while wheat or meslin flour remains at 70 percent.
Other adjustments include crude palm oil, now at 28.75 percent (down from 35 percent), and margarine (excluding liquid varieties), set at 40 percent.
Raw cane sugar, both beet sugar and other types, has seen its tariff reduced from 70 percent to 57.5 percent and 55 percent, respectively. Cane/beet sugar in powder or granule form also dropped from 70 percent to 57.5 percent.
Refined salt intended for human consumption now has a tariff of 55 percent, a decrease from 70 percent. Envelopes are now taxed at 40 percent, down from 50 percent, and diaries/notebooks have seen a reduction from 40 percent to 30 percent.
Additional items impacted by the new fiscal policy include unglazed ceramic tiles (35 percent from 40 percent), glazed ceramic tiles (46.25 percent from 55 percent), ceramic cubes less than 7cm (35 percent from 40 percent), and zinc-coated steel sheets (35 percent from 45 percent), among other products.
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