New tariff cut vehicle imports to Nigeria’s Ro-Ro terminal

Following the ban and imposition of new tax on the importation of used vehicles that are more than 12 years old, only two roll-on roll-off vessels have arrived with 600 units of used vehicles at the Tin Can Island Port’ s terminals since April, 2023……CONTINUE READING...CONTINUE READING

The Nigerian Ports Authority (NPA)’s shipping position revealed that only one vessel, Grande Togo, berthed at Port and Terminal Multi-services Limited (PTML) with 300 units.

Also, it added that Grande Cameroon was being expected at Lagos pilotage district with 300 units of vehicles, saying that it would berth at Five Stars Logistic terminal this week.

In April, 2023, Motor Vehicle Administration Agency (MVAA) of Lagos State slammed a fresh N4,600 charge on all imported vehicles coming out of Lagos ports known as Temporary Vehicle Tag (TVT).

Also, the Federal Government introduced Import Adjustment Tax (IAT) levy on motor vehicles of two litre engine (2000 cc to 3999 cc) at two per cent, adding that vehicles with four litre engines (4000 cc) and above would attract 4 per cent IAT with effect from June 1, 2023. Worried by the IAT, the Association of Nigerian Licensed Customs Agents (ANLCA) had urged the Federal Government to clarify the target of the duty.

The Acting President of AN- LCA, Mr. Kayode Farinto, said that Customs agents were at crossroads to know if the two per cent was an increase or a down- ward review. Also, the acting president explained that the circular on the new tax regime emanated from the Federal Ministry of Finance, Budget and National Planning and addressed to all Ministries, Departments and Agencies (MDAs) on April 20, 2023, which comes into effect on June 1, 2023, did not also state if the tax was for new or used vehicles.

Farinto added that there was an existing five per cent and 15 per cent of Import Adjustment Tax (IAT) on both new and used vehicles, noting that agents did not understand what the new two per cent was all about. According to him, “the circu- lar is very vague, we do not know if the circular is for new or old vehicles, the government needs to be explicit because there is an existing five per cent and 15 per cent of Import Adjustment Tax on new and old vehicles.” it would be recalled that the Founder, National Association of Government Approved Freight Forwarders, (NAGAFF), Dr. Boniface Aniebonam, had explained that the introduction of the new taxes or increase in the existing ones by government was commensurate with infrastructural development to show for the taxes collected. Aniebonam stressed that his group had proposed an approach to the levies and taxes on the importation of used vehicles, noting that they should increase import duty on older vehicles and reduce the same for new ones.

He said: “That is the essence of the collection of levies and taxes for vehicle imports. I have already said that we should use an approach to it; the older a vehicle is, the higher the rate of import duty, the newer your vehicle is, the lower rate of duty. That way, the government will appropri- ate revenue. “What most Nigerians are saying about the issue of tax is that if and when we pay these taxes, what do the government do with it, that is the question people are asking……CONTINUE READING