- Terminal Operators Seek Reduction in Vehicles’ Import Duty
The Seaport Terminal Operators of Nigeria have urged the Federal Government to consider a reduction in import duty being charged on vehicles from 70 per cent to 20 per cent.
The Chairman, STOAN, Vicky Haastrup, who said this, however, commended the administration of President Muhammadu Buhari for banning the importation of vehicles through the land borders.
“In addition to this ban through the land borders, we appeal to the President to return the import duties on vehicles to 20 per cent from the prohibitive 70 per cent tariff imposed by the former administration.”
According to her, the reversal to the old tariff will serve as an incentive for Nigerians to import legitimately through the seaports and make appropriate payments to government, adding that this will boost revenue collection by the NCS and lead to the return of lost jobs at the affected ports.
“We also appeal to Customs officers at the border posts to support the Federal Government and the NCS leadership by ensuring that no smuggled vehicle finds its way into the country through the land borders from 1st January, 2017 when the new policy is expected to come into effect,” she said.
Haastrup added that since 2014 when the 70 per cent hike in the tariff of imported vehicles came into effect, Nigeria had lost about 80 per cent of its vehicle cargo traffic to the ports of neighbouring countries.
“Since the high tariff was introduced, importers have resorted to landing their vehicles at the ports of neighbouring countries and smuggling them into Nigeria without paying appropriate duties to government. This amounts to huge revenue loss to the Customs.
She said the ban on importation of vehicles through land borders, if well implemented by the Nigeria Customs Service, would reduce the smuggling of vehicles into Nigeria and revive the operations of Roll-On Roll-Off terminals in the country.
RORO terminals are specialised port terminals that handle all types of vehicles.
A statement by the group quoted her as saying, “We are confident about the ability of President Muhammadu Buhari to turn the economy around. The earlier ban on importation of rice, and now of vehicles, through the land borders are a welcome development.
“We are happy that the President has listened to our appeal to reverse incongruous policies inherited by his government from the former administration and which have deprived Nigerian ports of cargoes to the advantage of the ports of neighbouring countries.
“The policy also led to loss of more 5,000 direct and indirect jobs at the affected ports.”
