Nigerian maritime industry stakeholders have commended the Federal Government plans to slash the levy on imported vehicles from 35 percent to 5 percent.
They described the plan as a move in the right direction, which would go a long way to reduce the skyrocketing cost of transportation in the country.
Presently, Nigerian importers pay 35 percent duty and 35 percent levy, amounting to 70 percent tariff paid on imported vehicles. But with the planned reduction in levy, importers of vehicles would likely be paying 35 percent duty and 5 percent levy, amounting to 40 percent tariff on imported vehicles.
Segun Oduntan, chairman, Tin-can Island Port chapter of the Association of Nigeria Licensed Customs Agents (ANLCA) told Shipping Position Online, that the bill if approved and executed would help reduce transportation cost in Nigeria.
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According to him, the reduction of the levy collected from imported vehicles would also help to reduce inflation in the country.
Kayode Farinto, vice president of ANLCA, said the plan to slash levy on imported vehicles from 35 percent to 5 percent is a welcome development that would help to facilitate trade, which is critical in lifting Nigeria out of recession.
He however called for further review of Nigeria’s auto policy to ensure zero duty on imported machineries in order to encourage farmers, adding that government needs to prioritise trade facilitation to revenue collection.
Recall that the Federal Government had recently announced plans to slash the levy to be paid on imported cars from 35 percent to 5 percent, according to the draft copy of the 2020 Finance Bill to be presented to the National Assembly.
According to the bill, the government is also proposing to slash import duty on tractors and motor vehicles from 35 percent to 10 percent.
