Shippers have said there may be congestion of imported vehicles at the nation’s seaports following the Nigerian Customs Service’s decision to increase duties on imported vehicles by 10 percent. the punch has learned
The agents, in an exclusive interview with our Lagos correspondent on Sunday, accused the service of effecting a 10 per cent tax increase but failing to apply the 10 per cent annual depreciation value on imported used vehicles.
Vice President of the National Association of Government Approved Freight Forwarders Nnadi Ugochukwu wondered why the NCS started a new financial calendar in January when it was meant to do so in April.
He said: “Importers have to pay based on the 2014 model, even if the vehicle is a 2008 model. So it is true that the NCS has increased the duty up to 2014, their new schedule is normally supposed to start in March.
This has caused imported vehicles to be stuck at the port, Customs raised tariffs by 10 percent but refused to implement the 10 percent annual depreciation.
So if you look at it now, you have to pay 10 percent more. Refuses to apply the 10 percent annual depreciation value to imported used vehicles; now they are doing a 10 percent increase every year”
Nnadi expressed fear that the move would lead to a drop in vehicle imports.
Also speaking, African Association of Professional Freight Forwarders and Logistics Nigerian Chapter Port & Terminal Multipurpose Limited President Geoffrey Nwosu said:
He said: “Customs have increased their duty to the 2014 baseline from January. Even when we wanted to liquidate 2008, we were paying for 2013. Depreciation should be automatic”.
Meanwhile, a licensed customs broker, Mr. Timothy Adebowale, asked if the service failed to achieve the depreciation value rate on the 2014 vehicles.
He said the service was intended to effect the annual depreciation value of the vehicles.
In reaction, the National Public Relations Officer, NCS, Timi Bomodi, said the development was based on the government’s fiscal policy on the age limit.
“Nothing has fundamentally changed since the Federal Government’s age limit policy. I don’t think it’s necessary, these people know the rules. We don’t need to start this year like this, people are trying to see things turn out the way they should and if we’re trying to see things turn out the way they should we don’t need to beat ourselves up. over the head, we don’t need all those things. We just have to do our job and in the end if it favors some people well and if not, let them know what is right ”, he concluded.