The implementation of the 35 percent import levy on used cars will now take effect from June 30, 2015 as the Federal Government has once again moved the commencement date by two months. The Nigerian Automotive Council (NAC) had last month disclosed that the levy would be enforced as from April 30th.

In a bid to further promote local assembling of vehicles, the government had in September 2013 raised the import tariff on fully-built cars and used vehicles to 70 percent, from 22 percent. This is made up of 35 percent duty and 35 percent levy. A zero percent tariff was also announced on Completely Knocked Down units (vehicles) and five percent to 10 percent on Semi Knocked Down units.

The implementation of the new tax scheme came into effect in February 2014.

The Director-General, National Automotive Council, Mr. Aminu Jalal, told Reuters, through a text message on Monday, that a circular had been issued by the Federal Ministry of Finance deferring the implementation of the levy to June 30. There have been no reasons stated for the postponement.

Comments

Elsewhere on Ventures

Triangle arrow