President Muhammadu Buhari has assented to the total removal of import duty on commercial aircraft registered in Nigeria and also reduced import duty on passenger transport vehicles by 30 per cent.
Also, engine, spare parts and other components for commercial aircraft are to enjoy free import duty. This is according to a circular signed by the Deputy Comptroller-General T.M. Isa dates February 18. The directive is with immediate effect.
It said the reduction followed the decision to prune applicable levies and duties on vehicles in order to mitigate the rising transport costs and boost the mass transit industry.
The Deputy Comptroller-General (T&T), T.M. Isa, signed the circular dated 18th February, 2021 on behalf of the Comptroller General of the NCS.
The essence of the assent, according to the document, is to support implementation of the 2021 budget of economic recovery which culminated in the changes of the fiscal framework in terms of importation of automotive vehicles into the country.
The circular had a reference number: A HMF/BNP/CUSTOM/FA. 2020/02/20 Dated 8 Feb 2021, was titled T&T/2021 CIRCULAR N0.5 Grant of the Presidential Assent of Finance Act. Act 2020.
It reads in part: “Pursuant to the assent by Mr. President to the Finance Act. 2020 to support the implementation of the 2021 Budget of Economic Recovery and Resilience, certain changes to the fiscal framework regarding the importation of specific automotive vehicles into Nigeria have been introduced.
“These reforms are designed to reduce the applicable levies and duties on vehicles, mitigate rising transport costs, and boost road transportation and mass transit industry.
“Arising from the aforestated, Section 38 of the Finance Achief, 2020 modefied the First Schedule to the ECOWAS Common External Tariff (CET), Etc (Consolidation ) Act by amending applicable duties and levies as follows:
- a) Reduction of Import Duty on Fully Built (FBU) of Agricultural Tractors (HSHS Headings 8701from 35 per cent to 5 per cent as applicable.
- b) Reduction of Import Duty of Fully Built Unit of Motor Vehicles for the Transport of persons (cars) (HS Headings 8703 from 35 per cent to 5 per cent as applicable.
- c) Reduction of Import Duty of Fully Built Unit (FBU) of Motor Vehicles for the Transport of Goods (HSHS Headings (HSBC Headings 8704) from 35 per cent to 10 per cent as applicable.
“Furthermore, the Act also introduces fiscal incentives for the aviation sector. Airlines registered in Nigeria, which provide commercial air transport services by owning or leasing aircraft are to enjoy free importation of aircraft, engines, spare parts and other components.”