Government Reneges On Promise, Collects 70% Tariff On Vehicles

Stakeholders say contrary to the promise of the federal government to suspend the collection of a new tariff on imported vehicles till January 1, 2015, the Nigerian Customs Service (NCS) has actually begun the implementation of the regime.

According to clearing agents and freight forwarders who at the weekend withdrew their services at the ports, decried what they describe as hurried implementation of the 35% levy on imported vehicles by the NCS. 

 

The NCS’s authorities in Lagos however argue that the implementation was not on used vehicles popularly known as ‘tokunbo’ but on brand new imported vehicles, adding that they were empowered to begin the implementation two days ago. But port users believe that the implementation was a ploy by the customs to meet their revenue target of N1.2 trillion for this year.  

With the implementation of the 35% levy in addition to the 35% import duty, the effective tariff on imported vehicles now stands at 70%.

The new vehicle tariff is part of the federal government’s new national automotive policy aimed at protecting the local manufacturers from foreign competition.