NAC levy contravenes Finance Act, automotive policy, says Amiwero

The President of the National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, has urged the Federal Government to review the 15 per cent National Automotive Council (NAC) levy on imported vehicles, saying it contravenes the Finance Act.

Amiwero, in a letter to the President, Muhammadu Buhari, argued that the Finance Act of 2020 and 2021 does not make provision for the NAC levy being implemented by the Nigeria Customs Service (NCS)

Amiwero who was a member of the Ministerial Committee on Import Clearance Procedures and Implementation of Fiscal Policies, said the Finance Act specifically approved duties and levies for motor vehicles, which is yet to be implemented by the NCS.

He said the amendment of the first schedule of the Finance Act 2020 provided a reduction in duties and levies on imported vehicles as contained in part VI of the act under Customs and Excise Tariff (Consolidation).

According to him, the act stipulated that duty on tractors (HS Heading 8701) be reduced from 35 per cent to five per cent, duty on motor vehicles for transportation of more than 10 persons (HS Heading 8702) and transportation of goods (HS Heading 8704) be reduced from 35 per cent to 10 per cent

He said the act also provided a reduction of levy on motor vehicles for transportation of persons (cars) with (HS Headings 8703) from 35 per cent to five per cent.

Amiwero also noted that the NAC levy was not part of the 10- year action plan of the National Automotive Industry Development Plan (NAIDP) approved by the Federal Executive Council (FEC) in October 2013 on-duty assessment and levies.

The national automotive policy was adopted after the government and major automobile importers/manufacturers’ agreement on the growth of the nation’s automobile industry.

The letter reads: “Under the National Automotive Design and Development Council (NADDC) Act Section 10, subsection 1-(a) specifies two per cent as collection and not part of the Finance Act 2020 and 2021, which was referred in the circular NCS.

“But 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 total reviews to ascertain the possible shut fall within the seven years of the implementation of the auto policy.”