THE Chartered Institute of Taxation of Nigeria has said it is set to engage relevant government agencies over the introduction of a 15 per cent National Automotive Council levy on imported used vehicles.
The NCS had recently introduced a 15 per cent NAC levy on used imported vehicles, a decision which didn’t go down well with clearing agents in the country’s maritime sector.
The agents have argued that the NAC levy is mostly meant for new vehicles, questioning the rationale behind the introduction of the duty on used vehicles.
In a quick response, the service, in a statement by the National Public Relations Officer, Timi Bomodi, said the move was in compliance with the Economic Community of West Africa Common External Tariff.
Speaking with our correspondent in Lagos on Wednesday, the National President of the Chartered Institute of Taxation of Nigeria, Mr. Adesina Adedayo, explained that the association was still studying the legislative and policy framework.
He said, “We are still studying the legislative, institutional, and policy framework underlying this review and will soon make our position public.”
“We will surely use the option of dialogue first if our review reveals any legal or policy gap.”
Also speaking, a professor of Taxation and the past President of CITN, Teju Somorin, said that the e-hailing operators would feel the impact of the 15 per cent NAC levy more.
She said that the levy could result in the high cost of imported vehicles.
Explaining further she said, “Prices of transportation may go up. Uber and Bolt that use imported vehicles for their businesses may have to raise their fares.”
She also said that the levy would have a negative impact on the automobile industry.
Somorin added, “First of all, stakeholders should know the distinction between the Nigeria Customs Service and the Federal Inland Revenue Service. The mission and vision statements of the NCS are different from that of the FIRS.
“They are both revenues collecting agencies of the Federal Government, but they collect different revenues. In addition to non-tax revenue collection, NCS is also saddled with the implementation of trade policies.”
