President Goodluck Jonathan has approved the removal of import duty rate on Completely Knocked Down (CKD) components for mass transit buses of at least 40-seater capacity to encourage local production
A public notice issued by the Nigeria Customs Service on Friday in Abuja said the directive was contained in a circular signed by the Minister of Finance, Dr Ngozi Okonjo-Iweala.
The News Agency of Nigeria (NAN) reports that before the removal, 5 per cent import duty rate was charged on CKD for mass transit buses.
The notice entitled “2013 Fiscal Policy Measures’’, listed other presidential approvals on new import duty rates for sugar, rice, aircraft, solid minerals, polymers of polyethylene and polypropylene.
On sugar, the circular directed that all machinery and spare parts imported for the establishment of local sugar manufacturing industries shall attract zero per cent import duty.
It added that investors in sugar cane to sugar value chain shall enjoy a 5-year tax holiday, while raw sugar would attract an import duty rate of 10 per cent plus a levy of 50 per cent.
Similarly, the circular said refined sugar would attract an import duty rate of 20 per cent plus a levy of 60 per cent.
On imported rice, the circular said husked Brown Rice and semi- milled or wholly milled rice, whether or not polished or glazed would attract an import duty rate of 10 per cent plus a levy rate of 100 per cent.
NAN reports that since July 2012, the Federal Government imposed a 30 per cent levy on imported brown rice and a 50 per cent levy on imported polished rice.
A final levy increase of 100 per cent for rice import came into effect on Dec. 31, 2012.
According to the circular, all imported commercial aircraft and spare parts in 2013 will attract import duty rate of zero per cent and zero per cent import VAT.
Similarly, machinery and equipment imported for the development of solid mineral sector will attract an import duty rate of zero per cent and zero per cent import VAT.
To encourage import substitution, the Federal Government also directed that polymers of polyethylene and polypropylene would now attract an import duty rate of 5 per cent.
In the same vein, Amorphous Polythylene Terephthalate (PET) chips, which are raw materials, would attract an import duty rate of zero per cent VAT.
The circular directed the NCS to re-classify PET chips to differentiate them from PET resin.
According to the circular, all customs area comptrollers have been directed to ensure strict compliance with the new measures, which took effect from Jan. 1.