Valentine Okafor
The Federal Government has introduced a new green tax surcharge on motor vehicles under its 2026 fiscal policy measures that take effect July 1.
According to Reuters the new levy, approved April 1, will apply to vehicles with engine sizes of 2,000cc (2-liter) to 3,999cc at a rate of 2 per cent, while vehicles with engines of 4,000cc and above will face a 4 per cent charge, the document showed.
Vehicles with engines below 2,000cc will be exempt, as will mass transit buses, electric vehicles and locally manufactured vehicles.
The Government said the measure is part of a wider package of 2026 fiscal policy changes approved by its president, alongside revised import tariffs, excise duty changes and the adoption of the ECOWAS common tariff.
The circular also granted a 90-day grace period for importers, manufacturers and service providers before the implementation of the new excise duty rates in the broader package.
Finance Minister Wale Edun said the measures will replace the 2023 fiscal policy framework and will be published in the official government gazette.