Vehicle Taxes Increase By 40% Due To The Devaluation Of The Naira

As import duties increase, customs hike the exchange rate from N422/$ to N589/$, kicking operators.

Economists criticize the FG, claiming its policies will result in job losses, increase poverty among Nigerians, and make already difficult conditions even worse.

With a 40% increase in the exchange rate used to calculate import duty, the Central Bank of Nigeria and the Nigeria Customs Service have extended the current foreign exchange reforms to the maritime industry.

On Saturday, the NCS increased the exchange rate from N422.30 to N589 per dollar to be utilized in calculating import duties.
Clearing agents, freight forwarders, and importers have demanded an immediate change in the policy in response to the development, which has resulted in a similar 40% increase in import duty on imported commodities, including autos.

Stakeholders predicted that the strategy would cause a sharp decline in the quantity of imported automobiles as well as job losses in the maritime industry.
They said that this might have an impact on business and economic expansion. Insensitive, according to economists, the government’s approach could have a bad impact on Nigerians.
The change occurred just one month after the Federal Government stopped providing fuel subsidies and floated the Nigerian Naira. Additionally, it happened just as Discos started to gradually raise their rates.

Abdullahi Maiwada, the NCS’s national public relations officer, explained that the organization was merely carrying out CBN regulation when it certified the new exchange rate on its portal.
What you see in our system is what has been communicated to us, the man added.
We simply put into practice what is provided to us; it is a monetary policy. It is a monetary policy, and anything monetary is set by the CBN rather than us. Only that which is communicated to us is used.

Remilekun Sikiru, the Tin Can Island Youth Leader of the Association of Nigerian Licensed Customs Agents, confirmed the development by stating that the new rate has been implemented on the Customs system.

On Sunday, our source additionally confirmed the new pricing on the Customs portal.

The customs duty owed on automobiles, according to Sikiru, who is also the CEO of Siktemstar Logistics, has climbed astronomically.

For instance, the total duty formerly payable on a Toyota Camry was N901,000, but it has now increased, he added.