Reduced car import levy in Nigeria is a welcome idea. At an event to mark the 2021 International Customs Day, Hameed Ali, the comptroller-general of customs touched on it. What exactly are we talking about when we say reduced car import levy? How will it benefit the car importer? Well, let us look at it briefly, as the subject is developing yet.
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HOW MUCH DOES CAR IMPORTERS INTO NIGERIA PAY CURRENTLY?
Ordinarily, the cost of clearing cars into Nigeria space is a function of many variables. Such variables include the make of the car, the year of manufacture, the specific type or brand and the tariff code. Among these variables, the tariff or HS Code have a fixed and major impact. Most cars fall under tariff code 870390 while heavy-duty vehicles fall in the tariff code range of 870110-871640.
Consequently, used vehicles will pay 35% duty while newer ones from say 2016 will attracts 35% duty and 35% levy which totals 70%. This is the situation to the time of writing this piece.
REDUCED CAR IMPORT LEVY IN NIGERIA
President Muhammadu Buhari has signed the 2020 finance act into law. The law stipulates a downward review of the levy payable on imported cars from 35 percent to 5 percent. This reduced car import duty levy in Nigeria is a cheering news to car dealers. The law slices import duty for tractors and motor vehicles for the transportation of goods from 35 percent to 10 percent.
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WHEN WILL THE IMPLEMENTATION OF REDUCED CAR IMPORT LEVY IN NIGERIA COMMENCE?
“The president has signed the bill now an act, we are now waiting for the minister of finance to formally send to us directing for implementation. If that is done today, by tomorrow, we will inform all our commands to fully begin to implement the act,” Hameed Ali said.
“The only thing that is holding it now is that we have not received the formal conveyance of that act and we are a law-abiding organization. Once we receive the directive to commence implementation, we will immediately begin that. I hope and pray it will come this week or next week.
“We are the proponent of the tariff of vehicles; it was engineered by us and pushed forward by us. I have seen publications where I have been criticized that I use my position to push for this.
“They do not realize that it is in the overall interest of Nigerians, and we thank God and thank the president as well as members of the national assembly for accepting the proposal. Today it has become a law.”
Reduced car import levy in Nigeria is a creation by the Customs Boss himself in the year 2019. Today, we already have a law on lowest import duty for cars, awaiting transmission and implementation. Therefore, all car importers and users must remain grateful to the Comptroller General of Nigeria Customs – Hameed Ali. In addition, we say a big thank you to Mr. President – President Muhammadu Buhari for his accent to the bill now law. Lastly, we thank the national assembly for passing the bill. Furthermore, we will keep an eye on the implementation, and will alert you as soon as ripe.