Freight forwarders and Customs licensed agents operating at the nation’s seaports have applauded plans by the Federal Government to slash vehicle import duty from 35% to 5%, they said that the move is a step in right direction.
The Federal Government had announced plans to slash the levy to be paid on imported cars from 35 percent to five percent, according to the draft copy of the 2020 Finance Bill to be presented to the National Assembly.
Currently, vehicles imported into Nigeria attract 35% import duty and another 35% levy, bringing total tariff payable by importers to 70%.
Details of the bill shared by the presidency also show that the import duty of tractors and motor vehicles for the transportation of goods has been slashed from 35% to 10%.
The bill also showed that the import duty of tractors and motor vehicles for the transportation of goods will be slashed from 35 percent to 10 percent while tax relief will be granted to companies that donated to the COVID-19 relief fund under the private sector-led Coalition Against COVID-19 (CACOVID).
The Vice President, Prof Yemi Osinbajo also recently said the decision to slash duty on imported vehicles in the country is not an attempt by the Federal Government to kill the country’s automobile manufacturing industry, but to reduce the cost of transportation on the people in the face of growing economic challenges.
But, in a chat with our correspondent, the Chairman Tin Can port chapter of the Association of Nigeria Licensed Customs Agents (ANLCA), Prince Segun Oduntan said the bill will go a long way to reduce on transportation cost.
Oduntan noted that the bill will also help reduce inflation in the country if the President give his assent to the bill.
He said, “the bill will go a long way to put a lot of things in perspective, if it sees the light of the day. We can only be optimistic and hope the president gives assent to the bill, because this will help reduce inflation in the country”.
Also speaking to our correspondent, the Vice President of ANLCA, Dr. Kayode Farinto also said that the planned slash from 35% to 5 percent is a welcome development that will help facilitate trade and a key to get Nigeria out of recession.
Farinto however said that there is need for the government to further review the auto policy and as well ensure that zero duty is paid for machineries to encourage Nigeria farmers to go into extensive farming
According to him, “there is need for us to review the auto policy, it’s not functioning, let’s thank God that the government is listening, they need to do more, we need our economist to put their house together, government should downplay the issue of revenue now we should facilitate more on trade we should encourage things that can stand as palliative.
On whether the import duty slash would affect the revenue target for customs commands, the public relations officer of Nigeria Customs Service at the Tin Can Island Command, Uche Ejesieme said no official communication yet on the proposed slash of duty, he however said the service and Tin Can command will always strive to meet its revenue targets.
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