Goodnews: Customs finally Slashes import Duty on Car to 20%

The Nigeria Customs Service (NCS) has confirmed the reduction of duty payable on imported used vehicles, also known as Tokunbo, from 35 per cent to 20 per cent. Speaking on the development, the Customs Area Controller, Tincan Island Command of the service, Compt. Kunle Oloyede confirmed that the duty payable on Tokunbo vehicles has reduced from 35 per cent to 20 per cent.

Oloyede, who was speaking to journalists in Lagos, further disclosed that the reduction on used vehicle import duty may go down further, however, adding that it was necessary to check the smuggling of cars into the country.

He said, “Because when you check what is happening around, it’s high values, high rate of duty that allows smuggling through our land borders. Two or three days ago, the duty of vehicles dropped to 20 per cent, the government is looking at it, that why will new vehicles pay 35percent and old vehicles also pay 35percent even after giving backward integration incentives to most of those assembling plants, we still don’t have plants that can really satisfy the demands of the transport sector.

“I think that is why the government in its decision decided to drop the duty payable on tokunbo vehicles, and it’s going to drop further. From the grapevine am hearing that there could be further reduction so as to discontinue smuggling. We want to make smuggling not to be lucrative again that is the way govt is looking at it.”

On revenue drive, Comptroller Oloyede said the management team of the command has started making moves to lure people back to the command for revenue generation.

“I can tell you when we compare revenue from the time I came in up to now, we have over 25 billion extra export, compared to 24 billion it was before because I have been able to lure back people that are into bulk cargo. I have been able to convince them to come back to Josepdam.

“I visited Josepdam, I told them that my doors are open, the doors of my D.C. enforcement, D.C. in charge of bulk cargo are open,” the Customs boss stated.