Customs pushes for downward Review of Tariff on new imported vehicles from 35% to 5% Levy
The Nigerian Government has declared plans to reintroduce the abolished N1.50k per litre imposed on Petroleum Products.
Comptroller General of Nigeria Customs Service, NCS, Col. Hameed Ibrahim Ali, retd, who stated this before the Senate, maintained that the revenue generating agency has actually asked the Federal Government to go ahead wuth the plan in accordance with the Petroleum Product Tax Regime of 2004.
According to NCS, the move is to enable it expand the revenue source of the government, even as it said that it has the potential to narrow or supplement government deficit budget.
Speaking in Abuja when he appeared before the Senator Francis Alimikhena, All Progressives Congress, APC, Edo North Senate Committee on Customs, Excise and Tariff to defend the 2021 Budget of Customs Service, Hameed Ali who reiterated that the nonfunctional Scanners at the various Customs’ scanning sites has adversely contributed to the Service’s inability to carry out effective examination for selective consignments, however said that if purchased, the NCS will make them available in Apapa and Portharcourt.
He told the Senate that the Service has recommended for the downward tariff review of the current 35% Levy on new and luxury imported vehicles to 5%, also the downward tariff review of transit vehicles for transport of more than 10 persons (Trucks Inclusive) from 35% duty to 10% as part of moves to encourage licit massive importation of vehicles into Nigeria and further increase the revenue base of the Government.
Ali disclosed that the agency has targeted a total of N1.465 trillion to be raked into the Federation account this year, 2021 and that the N1.465 trillion consists of N1.267 trillion for Federation and N198.00 billion for Non- Federation.
According to him, when compared with the 2020 revenue target, the 2021 revenue target is higher by N85 billion or 5.80 Percent, just as he said that the Service has proposed a budget expenditure of N242.45 billion for the 2021 fiscal year and would be sourced from 7% cost of collection for 2021 which is N96 94 billion; 60% CISS, put at N47. 01 billion ; 2% VAT Share of NCS which is N07.40 billion; Outstanding Liabilities of N91.10 billion, totally, N242.45 billion.