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By Efe Onodjae
The Federal Government’s reduction in vehicle import levies has officially taken effect, offering hope of lower vehicle prices while prompting auto dealers to seek clarity on the newly introduced Green Tax before assessing the full impact of the policy.
The implementation, which commenced under the 2026 Fiscal Policy Measures, reduces the import levy on new vehicles from 20 per cent to 10 per cent, while the levy on used vehicles has been cut from 15 per cent to five per cent. The measure is aimed at easing the cost of imports, stimulating economic activity and providing relief to businesses and consumers.
Alongside the levy reduction, the government has introduced a Green Tax Surcharge on certain categories of imported vehicles as part of efforts to promote environmental sustainability. However, industry operators say the absence of clear details on the surcharge makes it difficult to determine whether the policy will ultimately translate into lower vehicle prices.
