NCS Begins 30% Reduction In Vehicle Duty
The Nigeria Customs Service (NCS) has begun the implementation of five per cent duty on importation of Fully Built Vehicle (FBV) as approved by the President in the 2020 Finance Act.
This is coming despite the recent suit filed to stop the implementation. However, Customs said yesterday it was not aware of any suit filed on it.
In the Act, FBU duty was slashed from 35% to 5% while Semi Knocked Down (SKD) vehicles duty is 10%.
The auto manufacturers said the 30% reduction put investment in vehicle assembling at jeopardy.
The implementation was contained in a Customs circular to the various commands, signed by the Deputy Comptroller-General, Trade and Tariff (T&T), T.M. Isa, and dated February 18, 2021 on behalf of the Comptroller General of Customs, Col. Hameed Ali (Rtd).
Spokesman of the Customs, Mr. Joseph Attah confirmed the commencement of implementation as approved by the President in a chat with our correspondent but said he was not privy to any suit filed to stop it.
According to the circular, the reduction followed the decision to prune applicable levies and duties on vehicles to mitigate rising transport costs and boost the mass transit industry.
The Act also introduces fiscal incentives for the Aviation Sector: “For the avoidance of doubts, airlines registered in Nigeria which provides commercial air transport services by owning or leasing aircraft are to enjoy free importation of aircraft, engines, spare parts and other components.”