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

A proposal has been made by the Nigeria Customs Service (NCS) to reduce the cost of importing used and new vehicles into the country.

While defending the Service’s 2020 budget before the House Committee on Customs, Mr Hameed Ali, the Comptroller-General of Customs made the revelation.

According to him, the proposal was made with the aim of swelling revenue and discouraging smuggling as Nigerian importers currently ship their containers to neighbouring ports where duties and levies are very low compared to what obtains in Nigeria.

“We have forwarded a proposal for the downward review of vehicle tariff to our 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%.

This position, if approved, will encourage compliance and boost revenue because the 70% duty and levy is encouraging smuggling of vehicles,” he said.

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