Customs begins implementation of reduced import levy for vehicles

THE Nigeria Customs Service (NCS) has begun the implementation of reduced import levy for vehicles.

Joseph Attah, the Customs Public Relations officer, said today that a circular had been distributed to all the service’s commands for immediate compliance.

The said circular containing the directive from the NCS on the implementation of the new import duty regime was signed by Deputy Comptroller-General (T&T), T.M. Isa, on behalf of the Comptroller General and dated February 18, 2021.

It would be recalled that the 2020 finance bill recently signed into law by President Buhari, provides for a downward review of excise duty on tractors and motor vehicles for transportation, as well as recommends levy to be paid on imported cars.

With the provision in the bill, car import levy has been tremendously reduced to five percent from 35 percent; while import duty on tractors has also been reduced from 35 percent to five percent. Mass transit vehicles and motor vehicles for goods transport has also been slashed to 10 percent from 35 percent.

“We have sent the circular to all the commands. Yes, we have started implementation. Once a directive is given, it means the Customs is set,” Attah said.

According to a recent statement by the Customs comptroller-general, Hameed Ali, the ministry of finance, budget and national planning, had recently given the Customs Service directive to commence implementation.

“The act has been transmitted to us. We received the minister’s mandate this week, to start working on it, although we have to develop certain regulations and measures on how we intend to implement the law,” Ali had said.

 “We have to change our codes to fit into the new law. You know that commercial vehicles levy is the only levy that has been reduced from 35 percent to five percent.

“So we have to change the codes to fit into the new law and we hope we’ll finish that in two days and the minister will have to look at it and agree that yes that is what we should do.”