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| Finance Minister, Segun Aganga with Minister of State, Finance, Yabafa Lawan Wabi at the press briefing with journalists in Abuja yesterday Nov 29, 2010. |
The Minister of Finance, Dr Olusegun Aganga yesterday announced government’s economic blue print going forward which included extending the age of banned used motor vehicles’ importation from 10 years to 15 years from year of manufacture. Government also removed certain items from the existing import prohibition list.
The Minister of Finance who made the revelation at a press briefing in Abuja also stated that the Ministry has “conducted a review of the existing Import Prohibition List and Tariff Structure in line with best practices to review the impact of the prohibitions on the Government’s revenue and local industry on an on-going basis. The NEMT held extensive consultations with key stakeholders and found that import bans are ineffective and result in a huge revenue loss to Government through significant trade diversion to neighbouring countries and the routine smuggling of banned goods into the country. In addition, the items on the Prohibition List cost more than what obtain in neighbouring countries due to the smuggling activities.
“It is expected that these trends are likely to continue; therefore we have received Presidential approval to replace the bans with tariffs to protect domestic industries with regards to the following items:
i. Cassava: A 15% levy in addition to the substantive 20% duty;
ii. Toothpick: A 20% levy and duty of 20%;
iii. Furniture: A 20% levy and duty of 20%;
iv. Textile Fabrics & Articles (Lace Fabric, Brocade, Voile, African Print etc. and Made-up Garments): A 20% levy and duty of 20%; and
i. Cassava: A 15% levy in addition to the substantive 20% duty;
ii. Toothpick: A 20% levy and duty of 20%;
iii. Furniture: A 20% levy and duty of 20%;
iv. Textile Fabrics & Articles (Lace Fabric, Brocade, Voile, African Print etc. and Made-up Garments): A 20% levy and duty of 20%; and
Source: TheWill Nigeria
