The Nigeria Customs Service (NCS) has removed the controversial National Automated Council (NAC) levy on imported used cars and replaced it with just a 15 percent levy, Customs Licensed Agents, have said.
Confirming this, Onome Monije, public relations officer of the Association Nigeria Licensed Customs Agents (ALNCA), Tin-Can Island chapter, said that the Custom system on automobile HS code 870321200, which used to be NAC 15 percent has been changed to levy 15 percent.
According to Monije, the implication on importers and their agents still remains the same because it is only a change of name as the importer is still expected to pay 20 percent import duty and 15 percent levy, totaling 35 percent.
Monjie advised the agents to calm down, and not take the law into their hands as the leadership of ANLCA will tackle the issue with the government and devise a way forward in resolving the controversy around tariffs for imported used vehicles.
Rilwan Amuni, taskforce chairman of ANLCA said the levy is a strategy by Customs to generate higher revenue at all costs.
He said that when Customs found out that agents were condemning the collection of 15 percent NAC, they quickly went to change the nomenclature to Common External Tariff (CET) levy.
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“When we compute the cost, insurance and freight, the duty, the NAC, Value Added Tax, ETLS, and 7 percent surcharge, one would find out that we are paying more now compared to when we pay 35 percent duty on used cars. And this amounts to double taxation,” he said.
Amuni said that Customs has relegated trade facilitation due to revenue generation, this was why the 30 percent they were forced to reduce through the ECOWAS CET, they have returned through the imposition of the levy.
Responding, Timi Bomodi, national public relations of NCS, said that the important thing is that the 15 percent levy is still there.
“Whether you call it NAC levy or CET levy, it is 15 percent import adjustment tax collected by Customs on vehicles, and is still there,” Bomodi told BusinessDay on the phone.
