Teasel Consulting

Kindly find attached the 2014 Central Bank of Nigeria Fiscal Policy on Automotive industry.

The details are spelt out below:

1. Fully Built Unit (FBU) cars shall attract a duty of 35% and 35% levy.

2. Fully Built Unit (FBU) commercial vehicles shall attract a duty of 35% without levy.

3. Local Assembly Plants shall import theirs:

Completely knocked down (CKD) at 0% duty
Semi-Knocked Down (SKD) at 5% duty
Fully Built Unit (FBU) cars at 35% duty and commercial vehicles at 20% duty without levy respectively in numbers equal to twice their imported CKD/SKD kits.
4. Car, Lorry/Bus tyres shall attract a duty of 20% and 5% VAT.
5. Importation of machinery and equipment for tyre production is now duty free.
6. Local tyre manufacturing plants are to import tyres at 5% duty in numbers equal to twice their production for two years from the date of commencement of production.

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