FG slashes import duties by 50% as new Green Tax takes effect
By Aboki Forex —
The Federal Government has cut Customs duties on imported vehicles by up to 50 per cent. This comes just before the new Green Tax Surcharge kicks in on July 1.
Import duty on brand new vehicles dropped from 20 per cent to 10 per cent. For used vehicles, known as Tokunbo, the duty fell from 15 per cent to five per cent. The Nigeria Customs Service confirmed the changes in a directive that took effect on Monday, June 29.
The Federal Ministry of Finance approved the cut. The aim is to soften the blow of the new environmental levy on importers and encourage cleaner transportation.
While duties go down, the Green Tax Surcharge targets vehicles with big engines. Cars with engine capacities between 2,000cc and 3,999cc will pay a two per cent surcharge. Those with engines of 4,000cc and above will pay four per cent.
Abdullahi Maiwada, the National Public Relations Officer of the Nigeria Customs Service, said the surcharge does not apply to electric vehicles, locally made vehicles, or mass transit buses. It is meant for higher emission vehicles with engines above 2,000cc.
The new levy will hit popular luxury SUVs and performance cars. Affected models include the Toyota Land Cruiser, Volvo XC90, Mercedes-Benz GLE, heavy duty pickups, and cars like the Porsche 911 and Honda Civic Type R.