President Muhammadu Buhari has agreed to a 30 percent reduction in import duties on passenger transport vehicles.
Zero or free import duty on aircraft engines and spare parts is also included in the reprieve.
According to the Nigeria Customs Service (NCS) circular, the order seeks immediate compliance.
It claimed that the reduction followed the decision to reduce the levies and duties applied to vehicles in order to alleviate increasing transport costs and improve the mass transit sector.
The General Deputy Comptroller (T&T), T.M. Isa, signed the circular on behalf of the Comptroller General of the NCS dated 18 February 2021.
According to the paper, the purpose of the agreement is to help the implementation of the 2021 economic recovery budget, which resulted in changes in the fiscal system with regard to the importation into the country of automotive vehicles.
The circular had a benchmark number: A HMF/BNP/CUSTOM/FA. 2020/02/20 Dated 8 Feb 2021, was titled T&T/2021 CIRCULAR N0.5 Grant of the Presidential Assent of Finance Act. Act 2020.
It 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.
“c) 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”.
