President Muhammadu Buhari has slashed the import duty payable on passenger transport vehicles by 30 percent, as part of measures to reduce the cost of transportation and boost mass transit in Nigeria.
Buhari in a circular to the Nigeria Customs Service (NCS), sought the immediate compliance with the approved reduction on the import duty on vehicles
The circular dated 18th February signed by the Deputy Comptroller-General (T&T), T.M. Isa on behalf of the Comptroller General of the NCS, also includes zero or free import duty on aviation engines and spare parts.
Buhari approval of the reduction, 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 with a reference number: A HMF/BNP/CUSTOM/FA. 2020/02/20 Dated 18 Feb 2021, was titled T&T/2021 CIRCULAR N0.5 Grant of the Presidential Assent of Finance Act 2020.
The circular 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.
) 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 circular concluded.
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