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Customs Urge FG To Reduce Import Duty On Vehicles From 70% to 45%

Nwogbunyama Emeka

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custom import duty reduction

customs import duty reduction

One of the reasons why it is not so easy for an average Nigerian to comfortably buy a car is due to the import duties placed on vehicles. If you really want to find out yourself, you can use our Autojosh Import Duty Checker to check of over 5000 cars.

The Nigerian Customs Service (NCS) are working towards the reduction of the current vehicle import duty from 70% to 45%. The Comptroller-General of Customs, Col Hameed Ali (retd.) has urged the federal government to reduce the 35% levy on imported vehicles , saying the move is necessary to check the rising cases of smuggled vehicles into the country.

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The Punch reports that Ali said this on Wednesday, January 23, in Abuja at the unveiling of a Strategic Revenue Growth Initiative which was held at the Ministry of Finance. The Customs boss said the Nigeria Customs Service had made a proposal to the Ministry of Finance on the need for a reduction in the 35% levy on imported vehicles.





He said currently, any new vehicle imported into the country attracted an import duty of 35% and an additional levy of 35%, bringing out the total duty payable on such a vehicle to about 70%. Ali said the 70% being charged by the government is high and stressed the need to reduce it. He explained that the government could still retain the 35% import duty while the additional 35% levy could be reduced.

Below are his words;

“First, we must understand the fact that smuggling in most cases did not really occur because of the tariff that is placed on goods in Nigeria.

“When we talk about vehicles, yes, new vehicles attract 70% duty; that is 35% duty and 35% levy but most of the vehicles that are being smuggled through our borders are not new vehicles, they are used vehicles.

“And the value is calculated based on the year of make and other attributes. So, the motivating factor that gets people to move these goods to our neighbouring countries is with the sole aim of smuggling them into Nigeria.

“The 35% is a baseline which is the duty, but the 35% levy is what we think should be tinkered with. “We should be able to reduce that to a level that it would be affordable. 70% is on the high side, there is no doubt about that for new vehicles but we cannot touch the baseline of the tax regime.”

 









Emeka is a Contributor at Autojosh. A graduate of Electrical/Electronic Engineering with a B.Eng degree. Emeka is a car enthusiast who is interested in traveling, writing, movies and driving. He also loves drinking garri with cold water.

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