Customs slashes duty on Tokunbo vehicles to 20 percent

The Nigeria Customs Service (NCS) has now confirmed  the reduction of duty on imported used vehicles, also known as, Tokunbo from 35 percent to 20 percent.

This followed two weeks of denial.

It would be recalled that the service  had reduced the duty payable On tokunbo vehicles from 35 percent to 20 percent but, the service National Public Relations Officer, Timi Bomodi, denied,  saying it was an error.

But the Customs Area Controller, Tincan Island Command of the service, Comptroller Kunle Oloyede, confirmed that the duty payable on tokunbo vehicles have been reduced from 35 percent to 20 percent.

Oloyede, who was speaking to a group of maritime journalists in his office, in Lagos, further disclosed that the duty on used vehicle import may further be reduced, saying it was necessary to check smuggling of cars into the country.

“Because when you check what is happening around, its those high values, high rate of duty that allows smuggling through our land borders.

Two,  three days ago, the duty of vehicles dropped to 20 percent, government is looking at it that why will new vehicles pay 35percent and old vehicles also pay 35percent when after giving backwards integration incentives to most of those assembling plants, we still don’t have plants that can really satisfy the demands of transport sector.”

“I think that is why government in its decision decided to drop the duty payable on tokunbo vehicles, and its going to drop further.

” From grapevine, am hearing that there could be further reduction as to discontinue smuggling. We want to make smuggling not to be lucrative again ,that is the way govt is looking at it.

On revenue drive, Comptroller Oloyede said the management team of the command have started making moves to lure people back to the command for improved revenue generation.

“I can tell you, when we compare revenue from the time I came in up to now, we have over 25 billion extra export, compared to 24 billion it was before because I have been able to lure back people that are into bulk cargo.

“I have been able to convince them to come back to Josepdam.

“I visited Josepdam. I told them that my doors are open, the doors of my D.C. enforcement, D.C. in charge of bulk cargo are open,” he said.