‘No new levy on importation of used vehicles’

An automobile expert, Mr Mamudu Luqman has dismissed speculations about new levy on importation of used vehicles which is currently generating controversy in recent times.

It would be recalled that the clearing agents under the aegis of the Association of Nigerian Licensed Customs Agents (ANLCA) had recently threatened a strike over the recently introduced 15 per cent National Automobile Commission (NAC) levy on imported used vehicles.

Taskforce Chairman of ANLCA, Rilwan Amuni, announced the suspension of the planned strike which it deferred till after the forthcoming holidays.

The agents argued that the NAC levy is mostly meant for new vehicles, questioning the rationale behind the introduction of the duty on used vehicles.

But speaking development, on the Luqman of Transtech Industrial Consulting, said nothing has really changed, saying what the customs did was to migrate to the Command External Tariff of the Economic Community of West African States (ECOWAS).

He said, “There is nothing like a new levy. Before now the duty on imported cars was 35% while levy was 5% making a total of 40% by provision of section 38 of the 2020 Finance act.

“However, when in 2022 Nigeria migrated fully to the

CET of ECOWAS, it readjusted in compliance to the provisions of CET which capped duty at 20% only.

“I believe that in order to sustain protection for the local industry, the levy or internally adjusted tax (IAT) was placed at 15%.

“A reduction of total import tariff from 40% to 35%. CET allows this levy up to a maximum of 35% for countries committed to protecting their local industry. Nigeria chose only 15% even so they want it removed!

“You can see that the total is now 35% instead of 40%. So, you see, it is actually a reduction,” he explained.

He further said recently, the Minister of Finance by a circular simply reduced the tariff of SKD for pickups to 10% duty, the same as fully built. Companies like NORD and Mikano will have no further need to build pickups locally, they will simply import. Freight forwarders and their accomplices just want unhindered import of old and new vehicles of any age indiscriminately.”