The Federal Government has unveiled its 2026 Fiscal Policy Measures (FPM), introducing sweeping reductions in import tariffs on a wide range of goods, including rice, vehicles, steel products, and industrial equipment.
In a policy circular dated April 1, 2026, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced that the new framework replaces the 2023 fiscal policy and aims to boost economic activity across critical sectors.
As part of the reforms, import duties on several essential commodities have been lowered. For instance, the Import Adjustment Tax (IAT) on crude palm oil has been reduced to 28.75 percent from 35 percent. The government also released a revised tariff schedule covering 127 items, with reduced rates intended to encourage production and ease supply constraints.
Notably, tariffs on fully built passenger vehicles, including SUVs and station wagons, have been cut to 40 percent, down from 70 percent under the previous 2015 policy.
To cushion the impact of the transition, importers who opened Form M before April 1 will be allowed a 90-day window to clear their goods using the old tariff rates. Meanwhile, a new excise duty system and a green tax surcharge are scheduled to take effect from July 1, 2026.
Highlights of the revised tariffs:
- Rice (bulk or above 5kg): 47.5% (previously 70%)
- Broken rice: 30% (down from 70%)
- Raw and refined sugar: 55%–57.5% (down from 70%)
- Refined salt: 55% (down from 70%)
- Crude palm oil: 28.75% (down from 35%)
- Ceramic tiles: 35%–46.25% (reduced from up to 55%)
- Steel products: mostly reduced to 35% or lower
- Stationery items like diaries and envelopes: reduced to 30%–40%
Zero-duty and reduced-duty items:
- Agricultural and manufacturing machinery: 0%
- Railway locomotives (SKD/CKD): 0%
- Cargo ships above 500 tonnes: 0%
- Medical equipment such as breathing devices: 0%
Green tax exemptions:
The green tax surcharge will not apply to vehicles with engine capacity below 2000cc, mass transit buses, electric vehicles, or locally manufactured automobiles.
The government says the updated policy is aimed at supporting industrial growth, lowering import costs, and improving overall economic stability.
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