Expert raises issues on Senate, Customs positions on VDT/VEP dichotomy
More stakeholders have continued to join in the trending differences on Vehicles Duty Tariff (VDT)/Valuation ex-factory Price (VEP).
This time, former chairman of NAGAFF, Dr. Eugene Nweke has given thought-provoking explanations and questions arising from the controversy.
In an addendum format, NAGAFF’s Nweke said in parts: “Having listened to Senator Dino submissions, I want to make the following addendum: I reasonably share’s Senator Dino`s position on the subject matter; I also appreciate the CGC determination to bar-up his yearly revenue generation while leaning on the provisions of its enabling act; While it is true that the CEMA uphold that all import documents are valid for as much as seven years (life span of import transactions, which is a global practice), it is also truth that the CEMA accorded /reposed on officers of the Service, “discretionary powers” in the application of revenue related matters.
Continuing, Nweke said “It is also on record, that, till date, our applicable VDT /VEP, falls short of due empirical pricing and valuation processes, other than the prevailing practice; the reigns of “payable duty impositions on vehicles”. This is even as Various Valuation units of the service, has varying regimes in the application of ex-factory rate for vehicle valuation. Whereby making nonsense of uniformity applications on imported vehicles into the country.
“The Nigeria Customs Press statement / circular on the above subject, has not properly defined the applicable approach in this regards.
He also noted that the Circular /Press release, is not too clear on conveying the true Intention of the Customs Management, hence, the difference, in granting grace for vehicle imports without valid import clearance documents and grace for vehicles imported without appropriate payable customs duty, hence, Senator Dino’s brutal outburst.
Nweke further queried “What applicable exchange rate and ex-factory price will prevail under this circumstance. Is it the applicable prevailing exchange rate as the year of importation or the rate during the period of import and or purchase?”
