New auto policy on vehicles may affect Customs revenue

THE reduction in the age of imported vehicles and the Federal Auto Policy of the government may probably affect the Nigeria Customs Service in spite of the optimistic views expressed recently by the Comptroller General of Customs, Alhaji Dikko Inde

Abdullahi.
National Daily gathered that the only thing giving the Customs has as an advantage presently is the 35 per cent duty on vehicles as source confirmed that there has been a reduction in the importation of cars at PTML terminal.
Today, the Customs has reduced the age of vehicles that are allowed i from 15years to eight years. Although the Nigeria Customs Service (NCS) has generated over N800billion, about 70 per cent of its N1.2trillion target for the year, the sudden fall in revenue as a reduction in the age of imported vehicles and the controversial automotive policy of the government may cause the Nigeria Customs Service not to meet its revenue target for 2014.
Investigations confirmed that there has been a reduction in the number of containers scanned at the PTML terminal and the lull is everywhere in the various Customs Command.
“Importers are suffering due to the 35 per cent increase in duty of vehicles and Tin Can Island Port and the PTML revealed same – drop in duty of vehicles.
Today, Customs revenue has been threatened as the vehicle import drops. With about four months to the end of the year and with over N800billion in eight months, will the Customs hit the N1.3trillion target for the year?
Heavy duty trucks collected by Customs has gone up, for example, a Tipper pays N60,000 as duty before, now it is increased to N350,000, imported Truck Heads pay N50,000 now to N250,000 while dumpers pay N120,000 before but now they pay N1.60million, fire service trucks pays N120,000 now N1.2million etc. Number of containers scanned has
been drastically reduced. It will be recalled that the NACCIMA boss recently warned that unless the Federal Government adjust the Auto Policy of the government, it may not meet its revenue target for 2014.