The NCS in a Tariff and Trade Directorate circular dated 18th February, 2021 with ref NCS/T&T/DCG/HQ/S:52/VOL.II titled Grant of the Presidential Assent to the Financial Act, 2020 has also reduced duties and levies to importation of vehicles transporting persons and goods.
The circular signed by Deputy Controller-General (T&T) for the Customs Comptroller General, T.M Isa read,” Pursuant to the assent by Mr. President, to the Financial 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.
On the implementation of Act for airlines, the circular read,”…The Act also introduces fiscal incentives for the Aviation Sector. For avoidance of doubt, 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
Earlier parts of the circular referred to reforms by government on road transportation stating that they are designed to reduce applicable levies and duties on vehicles, mitigate rising transportation costs, boost road transportation and the mass transit industry.
It read,” Arising from the aforestated, Section 38 of the Financial 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 Duties on Fully built units (FBU) on agricultural tractors(HS HEADING 8701) from 35% to 5% applicable; (b) Reduction of Import Duties Fully built units (FBU) of Motor Vehicles for the transport of more than 10 persons (HS GHeadings 8702) from 35% to 10% as applicable.
“(c) Reduction of Levy on Fully built units (FBU) of Motor Vehicles for the transport of persons 9cars) ( HS 8703) from 35% to 5% as applicable and (d) Reduction of Import Duties Fully built units (FBU) of Motor Vehicles for the transport of goods (HS GHeadings 8704) from 35% to 10% as applicable.