Daily Law Tips (Tip 761) by Onyekachi Umah, Esq., LL.M,
ACIArb(UK)
![image](/2021/03/sjk.jpg")
Introduction:
There is a federal law made on 31 December 2020 that became
effective on 1st January 2021, that has brought in laudable changes
in the Nigeria’s taxation climate. The Finance Act 2021 caused 80
amendments that affected about 13 existing federal laws. The law is
popular for; the increase of Value Added Tax from 5% to 7.5%,
creation of the Unclaimed Funds Trust Fund and the Crisis
Intervention Fund of N500 Billion, and the exemption of low-income
earners (earners of minimum wage or less) from Personal Income Tax,
among other inventions. The 2020 Finance Act also affected the
federal government levy on imported cars.
![image](/2021/01/payne-alex.jpg")
Imported Cars and the Finance Act:
One of the down sides of importation into Nigeria is the
unpredictability of government levies. Practically, there is often
no reliable algorithm for the assessment of importation
levies/charges in Nigeria. Prior to 2021, import duty for cars was
30%, 35% for mass transit vehicles, trucks and tractors.
The Finance Act 2020, has caused a reduction of levy for
imported cars in Nigeria. As from 1st January 2021, the Import duty
on tractors has been reduce from 35% to 5%. Also, the import duty
on mass transit vehicles (motor vehicles for the transportation of
more than ten persons) and trucks (motor vehicle for transportation
of goods) has been reduced from 35% to 10%, while import duty for
import duty for cars has been reduced from 30% to 5%. Although the
Finance Act was signed by the President of Nigeria on the 31
December 2020, the law came into force on the 1st January 2021. As
such, the reduction of levy mandated by the law, became due on 1st
January 2021.
Conclusion:
Relying on the new Finance Act 2020, import levy on cars, trucks
and tractors have been reduced by the federal government of
Nigeria. While the sprouting local automobile manufacturers lament
over the reduction, the Federal Government of Nigeria insists that
the reduction will reduce the cost of transportation in Nigeria.
Also, the Comptroller-General of the Nigeria Customs Service,
believes that the reduction will discourage unlawful importation
(smuggling).
My authorities, are:
1. Sections 1, 2, 3, 4, 5 and 6 of the Constitution of the
Federal Republic of Nigeria, 1999.
2. Sections 1, 38, 81 and 81 of the Finance Act, 2020. Click to
download a free copy of the Finance Act, 2020 <https://learnnigerianlaws.com/free-copy-of-the-finance-act-2020/[1]>.
3. Bassey Udo, “Why Nigeria is slashing duty on imported cars from
35% to 5% — Osinbajo” (PremiumTimes, 24 November 2020)
<https://www.premiumtimesng.com/news/top-news/427760-why-nigeria-is-slashing-duty-on-imported-cars-from-35-to-5-osinbajo.html[2]> accessed 21
March 2021.
4. Onyekachi Umah, “Nigerian Customs Cannot Charge Import Duties On
A Personal Luggage” (LearnNigerianLaws.com, 28 May 2020)
<https://learnnigerianlaws.com/nigerian-customs-cannot-charge-import-duties-on-a-personal-luggage/[3]>
accessed 21 March 2021
5. Onyekachi Umah, “Why You Cannot Import Bees And Bee-Keeping
Equipments Into Nigeria” (LearnNigerianLaws.com, 6 February 2020)
<https://learnnigerianlaws.com/why-you-cannot-import-bees-and-bee-keeping-equipments-into-nigeria/[4]> accessed 21 March
2021.
6. Onyekachi Umah, “List of Fruits/Plants Prohibited from
Importation in Nigeria” (LearnNigerianLaws.com, 5 February 2019)
<https://learnnigerianlaws.com/list-of-fruits-plants-prohibited-from-importation-in-nigeria/[5]>
accessed 21 March 2021.
7. Onyekachi Umah, “It Is A Crime To Import Opium Into
Nigeria”(LearnNigerianLaws.com, 17 October 2018) <https://learnnigerianlaws.com/it-is-a-crime-to-import-opium-into-nigeria/[6]> accessed 21 March
2021.
8. Onyekachi Umah, “It Is An Offence To Import Live Fish Into
Nigeria Without License” (LearnNigerianLaws.com, 5 October 2018)
<https://learnnigerianlaws.com/it-is-an-offence-to-import-live-fish-into-nigeria-without-license/[7]>
accessed 21 March 2021.
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#SabiElectionLaws
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#SabiLawOnBeatFm
#SabiLawLectureSeries
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#SabiLawVideoChallenge
Speak with the writer, ask questions or make inquiries on this
topic or any other via onyekachi.umah@gmail.com,
info@LearnNigerianLaws.com or +2348037665878 (whatsapp).
To receive free Daily Law Tips, join our free WhatsApp group via
https://chat.whatsapp.com/L7h4f1exItZ38FeuhXG4WN or Telegram group,
via the below link: https://t.me/LearnNigerianLaws
To keep up to date on all our free legal awareness projects of Sabi
Law Foundation, follow us via
Facebook Page:@LearnNigerianLaws,
Instagram: @LearnNigerianLaws, Twitter: @LearnNigeriaLaw and
YouTube: Learn Nigerian Laws
Please share this publication for free till it gets to those
that need it most. Save a Nigerian today! NOTE: Sharing, modifying
or publishing this publication without giving credit to the author
or Sabi Law Foundation is a criminal breach of copyright and will
be prosecuted. This publication is the writer’s view not a legal
advice and does not create any form of relationship. You may reach
the writer for more information.
This publication is powered by www.LearnNigerianLaws.com {A Free
Law Awareness Program of Sabi Law Foundation, supported by the law
firm of Bezaleel Chambers International (BCI).} Sabi Law Foundation
is a Not-For-Profit and Non-Governmental Legal Awareness
Organization based in Nigeria.
Daily Law Tips (Tip 761) by Onyekachi Umah, Esq., LL.M,
ACIArb(UK)
Introduction:
There is a federal law made on 31 December 2020 that became
effective on 1st January 2021, that has brought in laudable changes
in the Nigeria’s taxation climate. The Finance Act 2021 caused 80
amendments that affected about 13 existing federal laws. The law is
popular for; the increase of Value Added Tax from 5% to 7.5%,
creation of the Unclaimed Funds Trust Fund and the Crisis
Intervention Fund of N500 Billion, and the exemption of low-income
earners (earners of minimum wage or less) from Personal Income Tax,
among other inventions. The 2020 Finance Act also affected the
federal government levy on imported cars.
Imported Cars and the Finance Act:
One of the down sides of importation into Nigeria is the
unpredictability of government levies. Practically, there is often
no reliable algorithm for the assessment of importation
levies/charges in Nigeria. Prior to 2021, import duty for cars was
30%, 35% for mass transit vehicles, trucks and tractors.
The Finance Act 2020, has caused a reduction of levy for
imported cars in Nigeria. As from 1st January 2021, the Import duty
on tractors has been reduce from 35% to 5%. Also, the import duty
on mass transit vehicles (motor vehicles for the transportation of
more than ten persons) and trucks (motor vehicle for transportation
of goods) has been reduced from 35% to 10%, while import duty for
import duty for cars has been reduced from 30% to 5%. Although the
Finance Act was signed by the President of Nigeria on the 31
December 2020, the law came into force on the 1st January 2021. As
such, the reduction of levy mandated by the law, became due on 1st
January 2021.
Conclusion:
Relying on the new Finance Act 2020, import levy on cars, trucks
and tractors have been reduced by the federal government of
Nigeria. While the sprouting local automobile manufacturers lament
over the reduction, the Federal Government of Nigeria insists that
the reduction will reduce the cost of transportation in Nigeria.
Also, the Comptroller-General of the Nigeria Customs Service,
believes that the reduction will discourage unlawful importation
(smuggling).
My authorities, are:
1. Sections 1, 2, 3, 4, 5 and 6 of the Constitution of the
Federal Republic of Nigeria, 1999.
2. Sections 1, 38, 81 and 81 of the Finance Act, 2020. Click to
download a free copy of the Finance Act, 2020 <https://learnnigerianlaws.com/free-copy-of-the-finance-act-2020/[1]>.
3. Bassey Udo, “Why Nigeria is slashing duty on imported cars from
35% to 5% — Osinbajo” (PremiumTimes, 24 November 2020)
<https://www.premiumtimesng.com/news/top-news/427760-why-nigeria-is-slashing-duty-on-imported-cars-from-35-to-5-osinbajo.html[2]> accessed 21
March 2021.
4. Onyekachi Umah, “Nigerian Customs Cannot Charge Import Duties On
A Personal Luggage” (LearnNigerianLaws.com, 28 May 2020)
<https://learnnigerianlaws.com/nigerian-customs-cannot-charge-import-duties-on-a-personal-luggage/[3]>
accessed 21 March 2021
5. Onyekachi Umah, “Why You Cannot Import Bees And Bee-Keeping
Equipments Into Nigeria” (LearnNigerianLaws.com, 6 February 2020)
<https://learnnigerianlaws.com/why-you-cannot-import-bees-and-bee-keeping-equipments-into-nigeria/[4]> accessed 21 March
2021.
6. Onyekachi Umah, “List of Fruits/Plants Prohibited from
Importation in Nigeria” (LearnNigerianLaws.com, 5 February 2019)
<https://learnnigerianlaws.com/list-of-fruits-plants-prohibited-from-importation-in-nigeria/[5]>
accessed 21 March 2021.
7. Onyekachi Umah, “It Is A Crime To Import Opium Into
Nigeria”(LearnNigerianLaws.com, 17 October 2018) <https://learnnigerianlaws.com/it-is-a-crime-to-import-opium-into-nigeria/[6]> accessed 21 March
2021.
8. Onyekachi Umah, “It Is An Offence To Import Live Fish Into
Nigeria Without License” (LearnNigerianLaws.com, 5 October 2018)
<https://learnnigerianlaws.com/it-is-an-offence-to-import-live-fish-into-nigeria-without-license/[7]>
accessed 21 March 2021.
Sabi Law Projects:
#SabiLaw
#DailyLawTips
#SabiBusinessLaw
#SabiElectionLaws
#SabiHumanRights
#SabiLawOnBeatFm
#SabiLawLectureSeries
#CriminalJusticeMonday
#SabiLawVideoChallenge
Speak with the writer, ask questions or make inquiries on this
topic or any other via onyekachi.umah@gmail.com,
info@LearnNigerianLaws.com or +2348037665878 (whatsapp).
To receive free Daily Law Tips, join our free WhatsApp group via
https://chat.whatsapp.com/L7h4f1exItZ38FeuhXG4WN or Telegram group,
via the below link: https://t.me/LearnNigerianLaws
To keep up to date on all our free legal awareness projects of Sabi
Law Foundation, follow us via
Facebook Page:@LearnNigerianLaws,
Instagram: @LearnNigerianLaws, Twitter: @LearnNigeriaLaw and
YouTube: Learn Nigerian Laws
Please share this publication for free till it gets to those
that need it most. Save a Nigerian today! NOTE: Sharing, modifying
or publishing this publication without giving credit to the author
or Sabi Law Foundation is a criminal breach of copyright and will
be prosecuted. This publication is the writer’s view not a legal
advice and does not create any form of relationship. You may reach
the writer for more information.
This publication is powered by www.LearnNigerianLaws.com {A Free
Law Awareness Program of Sabi Law Foundation, supported by the law
firm of Bezaleel Chambers International (BCI).} Sabi Law Foundation
is a Not-For-Profit and Non-Governmental Legal Awareness
Organization based in Nigeria.