Buhari Assents To Reduction Of 30% Import Duty On Vehicles
LAGOS FEBRUARY 22ND (NEWSRANGERS)-President Muhammadu Buhari has assented to the reduction of import duty on passenger transport vehicles by 30 per cent, The Nation learnt on Sunday.
The reprieve also includes zero or free import duty on aviation engines and spare parts.
The directive, according to a circular from the Nigeria Customs Service (NCS), which The Nation obtained, seeks immediate compliance.
It said the reduction followed the decision to prune applicable levies and duties on vehicles in order to mitigate the rising transport costs and boost the mass transit industry.
The Deputy Comptroller-General (T&T), T.M. Isa, signed the circular dated 18th February, 2021 on behalf of the Comptroller General of the NCS.
The essence of the assent, according to the document, is to support implementation of the 2021 budget of economic recovery which culminated in the changes of the fiscal framework in terms of importation of automotive vehicles into the country.
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.
“Arising from the aforestated, Section 38 of the Finance Achief, 2020 modefied the First Schedule to the ECOWAS Common External Tariff (CET), Etc (Consolidation ) Act by amending applicable duties and levies as follows:
“a) Reduction of Import Duty on Fully Built (FBU) of Agricultural Tractors (HSHS Headings 8701from 35 per cent to 5 per cent as applicable.
b) Reduction of Import Duty of Fully Built Unit of Motor Vehicles for the Transport of persons (cars) (HS Headings 8703 from 35 per cent to 5 per cent as applicable.
“c) Reduction of Import Duty of Fully Built Unit (FBU) of Motor Vehicles for the Transport of Goods (HSHS Headings (HSBC Headings 8704) from 35 per cent to 10 per cent as applicable.
“4. Furthermore, the Act also introduces fiscal incentives for the Aviation Sector. For the avoidance of doubts airlines registered in Nigeria, which provide commercial air transport services by owning or leasing aircraft are to enjoy free importation of aircraft, engines, spare parts and other components.
“5. Ensure wide circulation for immediate compliance, please”.
The Nation
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Posted by News Rangers
on Feb 22 2021. Filed under Business.
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