Nation
Auto Policy: FG Dragged To Court Over Finance Act 2020
The Abuja division of the Federal High Court has been asked to strike down Section 38 of the Finance Act 2020 which gives legal basis to the implementation of the 5 percent levy on some categories of cars which is reduction from 35 percent implemented by the government of Nigeria since 2020.
President Muhammadu Buhari had assented to the Finance Act 2020 on December 31, 2020.
Following the Presidential assent, the Nigeria Customs Service had planned the implementation of the policy.
But dissatisfied with the policy, Pan Nigeria Limited, Lafbart Innovation and Consulting Limited, Mikano International Limited and the Incorporated Trustees of Global Integrity Crusade Network, the Incorporated Trustees of Global Integrity Crusade Network (GICN) dragged the government to court to challenge the policy.
Defendants in the suit are the National Assembly, the Federal Government, Ministry of Industry Trade and Investment, Ministry of Finance and the Nigeria Custom Service.
The Finance Act 2020 reduced tariff on the importation of Fully Built Vehicle (FBU) from 35% to 5% whereas import duty for Semi Knocked Down (SKD) remains at 10%.
The implication of the policy is that all the businessmen who have invested in the assembly of SKD commercial vehicles including tankers for which Nigeria has a history of competence beyond the New Automotive Industry Development Plan (NAIDP) will suffer.
However, dealers in FBU can now import freely without recourse to Nigerian assemblers, including body builders that have existed for generations.
In a suit marked FHC/ABJ/CS/157/2021 and filed on February 10, 2021, the plaintiffs, through their counsel, Ayodele Akisanya and Adamson Adeboro, want the court to determine the following questions: “Whether by the provisions of Section 13(1) of the Customs and Excise Tariff ETC (Consolidated) Act, the failure of the President to rely on the recommendation of the Tariff Review Board to modify duties and levies as mandated by the said Section 13(1) before transmitting the Finance Bill 2020 as an Executive Bill to the 1st Defendant for passage into law and which Finance Bill 2020 includes Section 38 whereat the President purports to modify duties and levies, did not incurably contaminate the said Section 38 of the Finance Bill 2020 now Section 38 of the Finance Act 2020 and render same null and void ab initio and liable to be struck down.
“Whether by the provisions of Order 77(3) of the Senate Standing Order as Amended 2015 the 1st Defendant ought not to have received and if not provided by the Executive, demanded information or evidence of compliance with the statutory condition precedent set in Section 13(1) of the Customs and Excise Tariff ETC (Consolidated) Act as a precondition for passing the Finance Bill 2020 to an Act which Act now contains Section 38 whereat the President purports to exercise the powers granted by in Section 13(1) of the Customs and Excise Tariff ETC (Consolidated) Act but ignored the accompanying responsibility to rely on recommendation of the Tariff Review Board”.
The plaintiffs also sought the following reliefs from the court: “A declaration that Section 38 of the Finance Act 2020 is the by-product of non-compliance with statutory conditions precedent set in Section 13 of the Customs and Excise Tariff ETC (Consolidated) Act and therefore null and void ab initio rendering said Section 38 of the Finance Act 2020 liable to be struck down.
“A declaration that the President, subject to compliance with the precondition set in Section 13(1) of the Customs and Excise Tariff ETC (Consolidated) Act has the powers to modify tariffs, duties and levies without any reference, recourse and or resort to the 1st Defendant for approval or ratification.
“An order striking down all the provisions of Section 38 of the Finance Act 2020 as being invalidly made, null and void ab initio.
“An order of perpetual injunction restraining the 1st, 2nd, 3rd and 4th Defendants either by themselves, or agencies under them, parastatals and or organization, privies and assigns from implementing, enforcing, giving effect howsoever to the provisions of Section 38 of the Finance Act 2020”.
No date has been fixed for the hearing of the case.
The Movement for the Survival of the Izon Ethnic Nationality in the Niger Delta (MOSIEND) has called on the Management of Niger Delta Development Commission NDDC to embark on the water projects in Buguma city in Asari Toru Local Government Area, Rivers state
The Group called on the Rivers state government to revamp the Buguma fish farm to create employment for the teeming youths
On the water project in Buguma, MOSIEND said the population of Buguma has increased tremendously as the residents need more water projects to enhance the daily livelihood of the people
The Group also appealed to the Chairman of the council to assist in making the project a reality and attracts more developmental projects to the city
This call was on Rhythm 93.7 FM Port Harcourt, Radio program, Talk of the Town, by MOSIEND Eastern Zonal Coordinator of MOSIEND Half Hour Comrade Tammy Bruce Longjohn alongside Mark Ojuka,Chairman of Buguma and Hon Sandra Owunari JP Chairman Obuama and monitored by our correspondent
Comrade Ojuka also called on the Management of Liquidifed Natural Gas NLG to embark on a free medical outreach in all Kala bari communities to improve their health status
He appealed to LNG to award scholarship to indigens of Kalabari communities in tertiary institutions to better their education, noting the company is doing same in Bonny, abandoning Kalabari communities
“We need contracts, free medical, scholarships and employment including skill acquisition programs for our teeming youths in Kalabari extractions ”
On Security, Mark Ojuka said security in Buguma is at zero level with the help of the Ama Ma soldiers the city is more peaceful and investors friendly as the youths of area have cordial relationship with the security agencies in the area
“Security is very secured in Buguma clan”
He called on the Rivers state to revamp the Buguma fish farm to create employment for the teeming youths
“The youths are asking for human capacity building in the area to reduce unemployment”
“The revamping of the Buguma fish farm will also reduce youth violence”
Also Speaking, Eastern Zonal Coordinator of MOSIEND Half Hour Comrade Tammy Bruce Longjohn called for more improve in infrastructures in Kalabari community, especially in electricity
There is little improvement in terms of electricity in Buguma city
He decried the deplorable condition
of Buguma Health Centre, saying that the hospital is near functional
“Our sisters that are pregnant and our sick parents can not access the health centre for a better treatment ”
Describing the Health Centre as an eye saw, he called on Rivers state government and Buguma Local Government chairman Hon William to improve on facilities in the centre and make it more medically accessible to the sick persons in the area
Buguma, Tammy Bruce said is the spiritual headquarter of Kalabari people as such deserve more modern facilities from the government to improve lives
The Coordinator called on government, stakeholders and oil companies to assist and improve the poor infrastructural facilities in area
“We need first class hospitals, qualified medical doctors and nurses in the health centres and hospitals”
On the oil spilled in Obuoma Chairman MOSIEND Obuoma, Hon Sandra Owunari said the spill destroyed their crops and Rivers even polluted their only source of drinking water
She expressed displeasure that Rivers state government did not send any relief materials to the people in the affected community
On Chieftaincy title to women in Obuama, Hon Sandra Owunari said the community do not install Chieftaincy title to women, saying that Chieftaincy title is only reserved for men only in the community
CHINEDU WOSU
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