By Abdulrahman Abdullahi
President Muhammadu Buhari has signed a new directive to slash duty on imported vehicles into Nigeria.
The President ordered the Nigeria Customs Service (NCS) to immediately comply with the directive as it is targeted at curbing the rising cost of transport and provide a boost for the mass transit industry.
The price reduction would see import duties drop from 35% to 10% and even 5% in some cases depending on the category of the vehicle.
Recall that the federal government had announced plans to slash the levy to be paid on imported cars.
The development is contained in the draft bill of the 2020 finance bill, which was sent to the national assembly.
The bill has been passed by the lawmakers and now assented by President Buhari, giving room for the full implementation.
The palliative also includes zero or free import duty on aviation engines and spare parts.
A directive on the implementation of the new import duty regime is contained in a circular from NCS dated 18th February, 2021, and signed by Deputy Comptroller-General (T&T), T.M. Isa on behalf of the Comptroller General of the NCS.
The circular had a reference number: A HMF/BNP/CUSTOM/FA. 2020/02/20 Dated 8 Feb 2021, was titled T&T/2021 CIRCULAR N0.5 Grant of the Presidential Assent of Finance Act. Act 2020.
It reads in part: “Pursuant to the assent by Mr. President to the Finance Act. 2020 to support the implementation of the 2021 Budget of Economic Recovery and Resilience, certain changes to the fiscal framework regarding the importation of specific automotive vehicles into Nigeria have been introduced.
“These reforms are designed to reduce the applicable levies and duties on vehicles, mitigate rising transport costs, boost road transportation and mass transit industry.”
