By Innocent Orok
In his continuous campaign for a hitch -free operating environment for port users and to lessen the burden of double taxation , Dr Kayode Farinto has appealed to the Federal government, through the Ministry of Finance to abolished the 15% NAC levy charged on used vehicles, imported into the country.
Farinto who is the immediate Acting National President of ANLCA, has called for the sensitisation of stakeholders before effecting the collection of the newly introduced 4% Processing Fees, he also seek for the scrapping of 1% Comprehensive Import Supervision Scheme ( CISS) arguing that the 4% Processing Fees has replaced 1% CISS.
Speaking with some Maritime Journalists on Thursday, He said that imposing excessive levies and taxes without proper consultation with stakeholders would stifle trade, discourage importation, and push businesses towards smuggling.
Dr Farinto emphasised that in countries with structured economic policies, stakeholders are always carried along before the introduction of new charges, but Nigeria’s approach to taxation often ignores this principle.
He questioned whether the government was deliberately trying to discourage Nigerians from importing used vehicles, noting that with the 15% NAC levy and the 4% Customs charge in place, vehicle prices would soar, further worsening the transportation crisis in the country.
According to him, scrapping the NAC Levy would ease the financial burden on importers while still generating revenue for the government.
Speaking also on the new Tax bill being processed by the Federal government , he further raised concerns about the proposed Nigerian Tax Bill, which includes an increase in Value Added Tax (VAT) from 7.5% to 10%. He criticized the government’s inconsistency, recalling that President Bola Tinubu had previously condemned the 7.5% VAT rate, yet his administration is now seeking to raise it further.
Farinto pointed out that in many other developing countries, import-related taxes are kept below 1%, ensuring that businesses remain competitive. He warned that Nigeria’s high tax rates on imports could lead to a sharp decline in cargo throughput and increased capital flight.
One of his major criticisms was the flawed method of VAT calculation on imports, where VAT is charged not just on the cost of goods, but also on duties and other fees. He argued that VAT should strictly apply to the Free on Board (FOB) value of goods, as done in international best practices.
He further said that he had previously submitted a memorandum to the authorities proposing a correction of this anomaly, but his recommendations were ignored.
While acknowledging that the tax bill contains some positive provisions, such as allowing businesses to declare inactivity to avoid undue tax burdens, he insisted that the overall taxation system in Nigeria needs urgent reform. He urged maritime stakeholders to submit position papers to the National Assembly before the bill is passed, warning that failure to address these pressing taxation issues could further weaken the country’s economic stability.
Farinto concluded by calling on the Federal government to take immediate action, urging authorities to suspend the NAC levy, eliminate the CISS charge, review the VAT calculation method, and sensitise stakeholders before the implementation of the 4% Processing Fees by Customs to allow for proper stakeholder engagement.
He insisted that these measures are necessary to prevent excessive taxation from crippling the economy and making Nigeria less competitive in global trade.
