2026 Fiscal Policy: FG Slashes Import Duties on Vehicles, Palm Oil and Sugar

The federal government has unveiled its 2026 fiscal policy measures, cutting import tariffs on key items to stimulate growth. Cars, palm oil and sugar now attract lower duty rates under a revised national list of 127 tariff lines. Signed by the minister of finance, the circular reduces effective tariffs on fully built vehicles to 40 percent from 70 percent. Crude palm oil duty falls to 28.75 percent, while raw cane sugar rates drop to between 55 and 57.5 percent. A 90-day grace period also allows importers with existing Form ‘M’ to clear goods at previous rates. From July 1, a new excise duty regime and green tax surcharge will take effect, though electric vehicles and mass transit buses remain exempt. Additional cuts span items from anti-malarial drugs to steel coils, reflecting a broad push to lower input costs across multiple sectors.

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