FG ready to slash levy on imported cars from 35% to 5%

By: / Nov 22, 2020 / 115 views
FG ready to slash levy on imported cars from 35% to 5%

FG ready to slash levy on imported cars from 35% to 5%

The Nigerian Customs Service has proposed that the importation of cars (both old and new vehicles) should be reduced to 5% or 10% against the current 35% cost of importation into the country.

Mr. Hameed Ali, the Comptroller-General of Customs service disclosed this while defending the agency’s budget before the House Committee on Customs.

He noted that this action was thought through and it will boost the revenue, it will also discourage smuggling as some Nigerian importers do. Mr Hameed complained that Nigerian importers ship their containers to neighbouring ports where charges are lower compared to the 35% charge collected by the Nigerian Government.

The Comptroller-General also stated that a proposal for downward review of vehicle tariff has been sent to the Supervising Ministry, which is the Finance Ministry for consideration so that Customs duty on imported vehicles remain 35%, while the levy be reduced from the current 35% to 5 or 10%…

He finally noted that, if the proposal is approved, it will greatly encourage compliance and boost revenue because the 70% duty and levy is encouraging smuggling of vehicles.



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