Car dealers have threatened to close their stores this week following the 15% National Automobile Commission Levy placed on imported used vehicles by the Nigeria Customs Service.
Current situation
Clearing agents are seizing operations as a result of the 15% National Automobile Commission levy announced last week by the Nigeria Customs Service, a levy reportedly placed on new cars.
What this means
Clearing and forwarding agents are threatening to close their stores, an action that would dip the revenue generated by the sector. Also, importing cars would be nearly impossible as no agents would be on the ground to carry out the due process.
In case you missed it
- The federal government in the finance Act 2020 reduced the import levy on cars from 30% to 5%, and the levy on tractors from 35% to 5%.
- FG also reduced import duty on mass transit vehicles with passenger capacity of 10 persons from 35% to 10%.
- The stakeholders didn’t approve of the deduction in imported levy, as the federal government was forfeiting a significant amount of the revenue generated from import duties.
- In response to the 15% levy, the leadership of port management threatened to embark.