NAC 15% Levy: Amiwero Petitions Presidency
BY EGUONO ODJEGBA
President of the National Council of Managing Directors of Nigeria Licensed Customs Agents (NCMDNLCA), Mr. Lucky Amiwero has petitioned the presidency in respect of the National Automotive Council (NAC) 15% Levy, saying the policy introduction and enforcement by the Nigeria Customs Service (NCS) is a contravention of the Finance Act 2020.
The letter dated 23rd April 2022, addressed to President Muhammadu Buhari and made available to our reporter faulted the NCS for its action, and argued that the Finance Act provides for 5% levy for Motor vehicles as against the 15% levy currently been pushed; in defiance of the 2020 and 2021 Finance Act passed by the National assembly, and duly signed into law.
“The Finance Act provides for 5% levy for Motor vehicles of Chapter 8703 that is cars , there is no provision for NAC levy of 15% in either 2020 and 2021 Finance Act passed by the National assembly and signed in to law”, he said.
The letter titled The Duty Rate And Levy Approved For Motor Vehicles In Finance Act Of 2020 In Contravention Of The NAC 15% Levy Inputted By The Nigeria Customs Service (NCS) For Import Duty And Levy Collection , articulated the range of levies as approved in the Finance Act and applicable to NAC.
The letter reads in part, “We wish to bring to the attention of the Federal Government the duty and levy on Motor vehicles approved in the Finance Act of 2020, which contravenes the National Automotive Council (NAC) levy of 15% assessed on Motor Vehicles by Nigeria Customs Service (NCS)”.
He said the Finance Act 2020 specifically approves for Motor vehicles the following:
“Amendment of the first Schedule to the Act is amended by inserting and replacing as the case may be the following duties and levies: (a)Duty on Tractors (Heading 8701) From 35% to 5%. (b) Duty on Motor Vehicles for the Transportation of more than ten persons (HS Heading 8702) from 35% to 10%. (c) Levy on motor Vehicles for transportation of persons (Cars) (HS Headings 8703) from 35% to 5%, and (d) Duty for Motor vehicles for transportation of Goods (HS Heading 8704) from 35% to 10%.”
The National Council boss and maritime activist further argued that NAC levy was neither 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; noting that it is unlawful to include NAIDP in duty assessment and levies .
“Under the National Automotive Design and Development Council (NADDC) Act Section subsection 1-(a) specifies 2% percent as collection and not part of the Finance Act 2020 and 2021, which was referred in the circular by Nigeria Customs Service (NCS)
“Copy of the National Automotive Design and Development Council Act Section 10 and the Nigeria Customs Service (NCS) Circular No 4/2022 is attached and marked appendix 2a&b.”
Amiwero said following the collapse of the automotive policy, there is need to review and reevaluate the policy, first to ascertain the policy shortfalls before engaging in further actions.
“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 reviews to ascertain the possible shortfall within the 7 years of the implementation of the auto policy.”
Amiwero who have served in various presidential committees was a member of the Presidential Taskforce on the Reform of Nigeria Customs Service and member of the Ministerial Committee on Import Clearance Procedures and Implementation of Fiscal Policies.