Nigeria Imposes 35% Levy On Imported Vehicles To Support Local Assembly

Nigeria Imposes 35% Levy On Imported Vehicles To Support Local Assembly

From BusinessDay

As part of its determination to encourage newly licensed automotive brands that aim to build assembly plants in Nigeria, the Nigerian Customs Service (NCS) has commenced the full implementation of the Federal Government automotive policy.

The automotive policy, allows for an importer to pay 35 percent duty and 35 percent levy on imported vehicles and Customs has started the collection of 35 percent levy on imported new vehicles, which was originally scheduled to commence in January 2015 after the implementation of 35 percent duty was flagged-off in July this year.

Also, the implementation of the new vehicle tariff is part of the Federal Government’s new national automotive policy which aims to discourage importation of vehicles in favour of local assembly plants.

BusinessDay investigation confirmed that the Customs’ management on Tuesday, September 16 directed the commands located at the Tin-Can Island port, which handles the nation’s roll-in and roll-out terminals, to commence the full implementation of the automotive policy.

Confirming this development, Chris Osunkwo, public relation officer of Tin-Can Island port command, told our correspondent that the Federal Government deemed it fit to direct that the 35 percent levy be implemented strictly on only imported new vehicles.

This, he said, was geared towards encouraging the automakers to come and invest in Nigeria, thereby creating an enabling environment for their finished products not to face stiff competition with the imported new cars.

According to Osunkwo, the 35 percent levy does not apply to imported used vehicles usually referred to as ‘tokunbo’ cars, which, according to the Federal Government may commence in January 2015.

Read more at BusinessDay