Customs  Affirms 20% Duty Reduction On Vehicles Importation  

The Nigeria  Customs Service Area Controller ,  Tin Can Island Command, Comptroller Kunle Oloyede has affirmed that to discourage smuggling, the federal government has reduced duty paid on imported vehicles from 35%  to 20% thus  may further decline in coming weeks.

 

Oloyede stated this  when the executives of the Association of Maritime Journalists of Nigeria (AMJON) paid a courtesy visit to the Customs Command on Wednesday in Lagos.

 

He also informed that at assumption of office,  he  reel out his three points agenda to   include, discipline, increase in revenue and trade facilitation.

 

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He told the group of journalists that on his resumption at the command, he was given a daily target of N2.5 billion from the  previous N1.5 billion daily target. And within barely six weeks of his being in office,  despite the two weeks strike action embarked upon by freight forwarders  due to   the Vehicle Identification   Number (VIN)  policy, he has increase the revenue of the Command  by over  N25billion.

 

Comptroller Oloyode  said, “The revenue as at the time I got  here it was N1.5bn revenue target  per day.  So I was given a revenue  target of N2.5bn  per day. And  I had the first parade ,  I told my officers three key things in no particular order, discipline, increase  in revenue and trade facilitation.

 

“I am also in agreement with the  World Customs Organization (WCO)  and the World Trade  Organisation (WTO) article that says for West Africa and Africa generally, we should do low tax and high turn around time. When you have low tax and turn around, you make more  revenue.

 

On the controversy over reduction in duty on imported used vehicles, the Controller who confirmed the reduction, stated  that such move was necessary to reduce the  smuggling of vehicles  into the country.

 

According to him, the duty may drop further because by so doing, smuggling will become unattractive to the people.

 

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

 

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

 

“I think that is why government in its decision decided to drop the duty 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 government 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 more  revenue generation. He enthused that since his coming to the command, the revenue has improved significantly due to engagement with stakeholders

 

“I can tell you, when we compare revenue from the time I came in up to now, we have  over N25 billion extra , compared to N24 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 terminal.

 

“I visited Josepdam today, I told them that my doors are open, the doors of my DC Enforcement, DC in charge of bulk cargo are open.

 

The CAC urged journalists on developmental reportage from well informed judgement of issues before going to the press. He commended  the AMJON  for carving a niche for itself,  saying he noticed that there is a  great difference in their reports.

 

“Yes you may have one or two incidents  but,  I always urged you to always ask from both sides before you go to the press, this will give you a very informed judgment about what we are doing.

 

“When we are contacted, there are certain things we need to correct the impression and there are certain things when we hear it, we need to  apologise. We need to bring all parties to round table to solve problems.

 

“It’s a great opportunity to meet you today because am barely six weeks here” he said.