Clearing agents under the aegis of National Council of Managing Director of Licensed Customs Agents (NCMDLCA), have stated that there is no provision for National Automotive Council levy (NAC levy) of 15 per cent in either 2020 and 2021 Finance Act passed by the National Assembly and signed in to law, hence it’s implementation by the Nigeria Customs Service (NCS) is illegal.
President NCMDLCA, Lucky Amiwero, in a letter to President Muhammadu which was made available to LEADERSHIP, said NAC levy was not part of the 10 year implantation plan of (NAIDP) approved by the Federal Executive Council (FEC) on the 2nd of October 2013, which is expected to expire in 2023.
Amiwero, who was also a member of presidential committee on review of Customs laws, therefore, called for review of the auto policy.
According to him, the Finance Act 2020 specifically approves for motor vehicles the amendment of the first Schedule to the Act which is amended by inserting and replacing duties and levies.
He said, “Duty on Tractors(Heading 8701) From 35 per cent to 5 percent; duty on Motor Vehicles for the Transportation of more than ten persons (HS Heading 8702) From 35per to 10percent; levy on motor Vehicles for transportation of persons(Cars) (HS Headings 8703) from 35 per cent to 5percent and duty for Motor vehicles for transportation of Goods (HS Heading 8704) From 35percent to 10percent,” he noted.
“Finance Act provides for five per cent levy for Motor vehicles of Chapter 8703 that is cars , there is no provision for NAC levy of 15 per cent in either 2020 and 2021 Finance Act passed by the National assembly and signed in to law.”
“NAC levy was not part of the 10 year implantation plan of NAIDP approved by the Federal Executive Council (FEC) on the 2nd of October 2013, which is expected to expires in 2023 and never being included in the process of duty assessment and levies.
”Under the National Automotive Design and Development council(NADDC) Act Section subsection 1-(a) specifies two per cent as collection and not part of the Finance Act 2020 and 2021, which was referred in the circular by Nigeria Customs Service (NCS)
“But with the collapse of the auto policy in 2021 and the removal of the protective regime of duties and levies , there is the needs for a total review to ascertain the possible short fall within the seven years of the implementation of the auto policy,” he stated.