The Nigeria Customs Service (NCS), on Monday, confirmed the reduction of import duty on vehicles from 35 per cent to 20 per cent.
In a statement signed by Customs National Spokesman, Timi Bomodi, the Service said that the 20 per cent duty is for both used and new imported vehicles.
According to the statement, “On Friday the 1st of April 2022, the Nigeria Customs Service migrated from the old version of the ECOWAS Common External Tariff (2017- 2021) to the new version (2022- 2026). This is in line with the World Customs Organisation (WCO) five years review of the nomenclature. The contracting parties are expected to adopt the review based on regional considerations and national economic policy.
“The nation has adopted all tariff lines with few adjustments in the extant CET. As allowed for in Annex II of the 2022-2026 CET edition, and in line with the Finance Act and the National Automotive policy, NCS has retained a duty rate of 20 per cent for used vehicles as was transmitted by ECOWAS with a NAC levy of 15 per cent. New vehicles will also pay a duty of 20 per cent with a NAC levy of 20 per cent as directed in the Federal Ministry of Finance letter ref. no. HMF BNP/NCS/CET/4/2022 of 7th April 2022.
ALSO READ FROM NIGERIAN TRIBUNE
I Lied To Police That I Killed My Husband To Make Him Allow Me Visit My Dad —Woman Who Claimed She Stabbed Spouse To Death
Kidnappers Set Up Camp In Lagos, Invade Estate Twice In Three Days, Kill Two, Abduct Three
“It is instructive to note that domestic fiscal policy on the importation of motor vehicles and other items is targeted at growing the local economy in these sectors. The focus of NCS is on the implementation of these policies in the hope that it achieves its desired objectives in line with the National Automotive Policy and other fiscal policies of the government.
“The NCS has also activated the use of Chapters 98 and 99 of the CET, in accordance with WCO recommendation for national use by contracting parties, which in our case promotes industrialization through sectoral and sub-sectoral incentives for members targeted at economic growth, enhancement of security and minimized consumption of unwholesome goods.
“It should also be noted that the Automotive industry, bonafide assemblers, manufacturers of auto spare parts and other local manufacturers enhance technology transfer and skill acquisition, create jobs and increase per capita income.
“In Chapter 98 of the current CET – Bonafide Assemblers importing Completely Knocked Down (CKD) and Semi Knocked Down (SKD) are to enjoy a concession of 0% and 10% Duty rate respectively. While within ECOWAS, duty rate for the same items are 5 per cent and 10 per cent respectively.
“Incentivizing their efforts through policy interventions guarantees a win-win situation for the nation in the long run.
Implementing the current CET takes immediate effect, please.”
Credit: Nigerian Tribune