“15% NAC levy on ‘Tokunbo’ vehicles illegal”, Clearing Agents tell FG

The National Council of Managing Directors of Licensed Customs Agents, (NCMDLCA), has stated that the National Automotive Council levy (NAC levy) of 15% is not included in either the 2020 or 2021 Finance Acts passed by the National Assembly and signed into law, making its implementation by the Nigeria Customs Service (NCS) illegal.

The NCMDLCA President, Lucky Amiwero, stated in a letter to President Muhammadu that the NAC levy was not included in the NAIDP’s 10-year implementation plan, which was approved by the Federal Executive Council (FEC) on October 2, 2013, and is set to expire in 2023.

As a result, Amiwero, who also served on the Presidential Committee to Review Customs laws, has called for a 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 was amended by inserting and replacing duties and levies.

“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”.

“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, and never being included in the process of duty assessment and levies.

”Under the National Automotive Design and Development Council, (NADDC) Act section, sub-section 1-(a) specifies 2% as collection and not part of the Finance Act 2020 and 2021, which was referred in the circular by Nigeria Customs Service, (NCS)

“However, with the collapse of the auto policy in 2021 and the removal of the protective regime of duties and levies, there is the need for a total review, to ascertain the possible shortfall within the seven years of the implementation of the auto policy”, he stated.

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