FG plans to slash levy on imported cars from 35% to 5%

Updated November 22, 20202 Mins read251

Nigeria’s federal government is currently making plans to reduce the levy on imported cars from 35% to 5%. This is contained in the draft bill of the finance bill of 2020, presented to the national assembly.

In its details, as shared by the presidency, the bill shows that the import duty of tractors and motor vehicles for the transportation of goods has been slashed from 35 percent to 10 percent.

The financial bill also grants tax relief to companies that donated to the COVID-19 relief fund under the private sector-led Coalition against COVID-19 (CACOVID).

The minister of finance, budget, and national planning, Zainab Ahmed, had earlier explained that the reduction in import duties and levies is targeted to reduce the cost of transportation.

“The reason for us is to reduce the cost of transportation, which is a major driver of inflation, especially food production,” she stated at the end of the federal executive council (FEC) on November 18.

That is that… Now let’s try to find out how much it will cost a person to purchase some of the most popular cars in Nigeria and have them cleared in compliance with Nigeria’s tax and other demands.

Here’s some newest information on the type and production rate of vehicles on the whole and some particular car brands and models.

Cars produced in 1999 would cost 260,000 or 400,000 (respectively, passenger cars and jeeps)
Cars produced in 2000 would cost 280,000 or 400,000 (respectively, passenger cars and jeeps)
Cars produced in 2001 would cost 280,000 or 450,000 (respectively, passenger cars and jeeps)
Cars produced in 2002 would cost 320,000 or 450,000 (respectively, passenger cars and jeeps)
Cars produced in 2003 would cost 330,000 or 480,000 (respectively, passenger cars and jeeps)
Cars produced in 2004 would cost 350,000 or 480,000 (respectively, passenger cars and jeeps)
Cars produced in 2005 would cost 400,000 or 500,000 (respectively, passenger cars and jeeps)
Cars produced in 2006 would cost 410,000 or 550,000 (respectively, passenger cars and jeeps)
Cars produced in 2007 would cost 500,000 or 570,000 (respectively, passenger cars and jeeps)
Cars produced in 2008 would cost 600,000 or 600,000 (respectively, passenger cars and jeeps)
Cars produced in 2009 would cost 780,000 or 850,000 (respectively, passenger cars and jeeps)
Costs for cars produced in 2010 or later are still debated.

However, no matter what the production year is, the car’s cost will determine the clearance price in the first turn.

Now, let’s see the expected prices for the customs clearance of certain most popular cars in Nigeria.

Acura MDX will cost approximately N700,000 to N980,000 or N380,000 to N850,000, depending on the production year.
Benz ML will cost approximately N450,000
Ford Focus 2012 will cost about N1,400,000 to N900,000 depending on the production year.
Hyundai Sonata will cost about N350,000 while Hyundai Elantra will cost about N1,300,000
Kia Optima 2012 will cost approximately N1,200,000 while Kia Spectra will cost about N500,000
Land Rover R / Sport 2006 will cost about N1,500,000
Mitsubishi Carisma 2005 will cost about N380,000
Lexus RX 300 will cost approximately N420,000
Mazda 3 SV will cost about N2,000,000, while Mazda 6 will cost approximately N450,000 depending on the production year.
Toyota 4 Runner 1994 will cost about N450,000 while Toyota Camry will cost approximately N270,000 to N600,000 or even N1,000,000 depending on the production year.
Toyota Corolla will cost approximately N450,000 to N600,000 depending on the production year.
Toyota Sienna 2004 will cost approximately N350,000
Toyota Venza 2010 will cost approximately N1,100,000
Toyota Yaris 2000 will cost about N200,000
Volkswagen Passat will cost approximately N380,000 while the 2011 Volkswagen CC will cost about N1,200,000

However, you need to remember that part from the automobile price; other costs need to be foreseen. Besides that, the information may change, so before you make up your mind to purchase a car from abroad, consult the CET tariff administration’s official webpage and find out whether your information is correct.