President Muhammadu Buhari has granted a 30 per cent import duty reduction on passenger transport vehicles.
The import duty reprieve covers aviation engines and spare parts and takes immediate effect.
The Presidential directive was conveyed through a circular from the headquarters of the Nigeria Customs Service (NCS) in Abuja.
It said the reduction followed the decision to prune applicable levies and duties on vehicles to mitigate rising transport costs and boost the mass transit industry.
The Deputy Comptroller-General, Trade and Tariff (T&T), T.M. Isa, signed the circular dated February 18 on behalf of the Comptroller General of the NCS.
The essence of the assent, according to the document, is to support the implementation of the 2021 budget of economic recovery which culminated in the changes of the fiscal framework in terms of the importation of automotive vehicles into the country.
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 aforestated, Section 38 of the Finance Act, 2020 modified 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 8701 from 35 per cent to five 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 five 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.
“d) Furthermore, the Act also introduces fiscal incentives for the Aviation Sector,” adding, “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.”
The Nigeria Customs Service NCS official directed that the circular be widely circulated to ensure immediate compliance.