PRESIDENT BUHARI ASSENTS REDUCTION OF 30 PERCENT IMPORT DUTY ON VEHICLES
President Muhammadu Buhari has assented to the reduction of import duty on transport vehicles by 30 per cent.
Airlines registered in Nigeria which provide commercial air transport services would henceforth enjoy free importation of aircraft, engine, spare parts and other components, according to a circular signed by the Deputy Comptroller-General T.M. Isa dates February 18
The circular titled 'T&T/2021 CIRCULAR N0.5 Grant of the Presidential Assent of Finance Act. Act 2020' states that the essence of the assent is to support the implementation of the 2021 budget of economy recovery and resilience.
Excerpts from the circular reads:
“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.