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Finance Act 2020: Customs Agents Declares Duty, Levy on Motor Vehicles Illegal
Eromosele Abiodun
Licensed customs agents in the country have called on the federal government to reverse the duty and levy on motor vehicles approved in the Finance Act of 2020.
In a petition to President Muhammadu Buhari, the agents said the duty contravenes the National Automotive Council (NAC) levy of 15 per cent assessed on Motor Vehicles by Nigeria Customs Service (NCS).
National President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), the umbrella body of customs agents in Nigeria, Lucky Amiwero, in the pertition said the amendment of the first Schedule to the Act is amended by inserting and replacing as the case may be, “Duty on Tractors (Heading 8701) From 35 per cent to 5 per cent, duty on motor vehicles for the transportation of more than 10 persons (HS Heading 8702) From 35 per cent to 10 per cent, levy on motor Vehicles for transportation of persons(Cars) (HS Headings 8703) from 35 per cent to 5 per cent and duty for Motor vehicles for transportation of Goods (HS Heading 8704) From 35 per cent to 10 per cent.”
The Finance Act, they added, provides for 5 per cent levy for motor vehicles of Chapter 8703 (that is cars) adding, “there is no provision for NAC levy of 15 per cent in either 2020 and 2021 Finance Act passed by the National Assembly and signed in to law.”
The agents added, “NAC levy was not part of the 10 year implantation plan of (NAIDP) approved by the Federal Executive Council (FEC) on the 2nd of October 2013, which is expected to expires in 2023 and never being included in the process of duty assessment and levies.
“Under the National Automotive Design and Development council (NADDC) Act Section subsection 1-(a) specifies 2 per cent as collection and not part of the Finance Act 2020 and 2021, which was referred in the circular by Nigeria Customs Service.
“But with the collapse of the auto policy in 2021 and the removal of the protective regime of duties and levies, there is the needs for a total reviews to ascertain the possible shut fall within the seven years of the implementation of the auto policy.”
