CBN Naira Devaluation : Duty Paid On Imported Vehicles Pushes Up By 40%

CBN Naira Devaluation : Import Duty Paid on imported cargoes, including vehicles pushes up by 40 percent.

It follows the increase in the exchange rate used for the calculation of import duty from N422.30 to N589/dollar.

Development caused total duty payable on a Toyota Camry sedan to rise from N901,000 to N1,270 million.

Again, duty payable on Toyota Venza SUV rose from N1.632 million to N2.278 million.

Toyota Corolla rose from N786,000 to N1.097m while Lexus RX which used to cost N1,828,000 now costs N2,550,447.

Operators in the maritime sector has lamented the 40% increase in the cost of clearing imported vehicles, following the increase in the exchange rate used for the calculation of import duty from N422.30/dollar to N589/dollar by the Nigeria Customs Service.

While calling for an immediate reversal of the policy, stakeholders said the policy would lead to job losses in the maritime sector and a drastic fall in the number of imported vehicles.

The National Public Relations Officer, NCS, Abdullahi Maiwada, who confirmed the new exchange rate on its portal, said the agency was only implementing a CBN policy.

He said :

“Whatever you see in our system is what has been communicated to us. It is determined by the Central Bank of Nigeria. So whatever we are using is what is obtainable as communicated to us.

“It is a monetary policy, we only implement what is given to us. It is a monetary policy and anything monetary is not determined by us, it is determined by the CBN. We only use what is communicated to us.”

Also confirming the development, the Youth Leader of the Association of Nigerian Licensed Customs Agents (ANLCA), at Tin Can Island, Remilekun Sikiru, said that the new rate had been effected on the Customs portal.

Sikiru, also the CEO of Siktemstar Logistics, told Punch that the customs duty payable on vehicles had increased astronomically.

He said :

“For instance, the total duty payable on a Toyota Camry was N901,000 before now, but it has been increased to N1,270m. Duty payable on Venza was N1.632m before now, but it has been increased to N2.278m.

“In the same vein, Toyota Corolla was N786,000, but now it has been increased to N1.097m while Lexus Rx which used to cost N1,828,000 now costs N2,550,447.”

He added :

“It’s pathetic. We woke up to see this in the early hour on Saturday 24th of June 2022. The Federal Government needs to reverse this.”

According to him, this development may lead to cargo including vehicles being trapped at the terminals.

“The customs duty has been increased and it will lead to a heavy increment in duty payment on general goods/cargo. This will bring hardship on importers”

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