A vehicle clearing agent, Mr. Toochukwu Nwaigbo, has advised the government on the need to remove the levy attached to newer vehicles coming into the country, even as he added that the move will increase importation of new vehicles.
Nwaigbo who said this last week in a chat with Shipping Position Daily at Tin Can Island port in Apapa also said that the move will reduce vehicle smuggling.
“What the government should have done is to look at the newer vehicles, remove the levy on them. That is the only thing that can encourage them, they bring in newer vehicles through the seaports,because most of the people that are bringing in these vehicles through the bush paths, it is the levy that is actually driving them into doing that, because they are supposed to pay 35% duty and 35% levy, that is 70%. Where is that one happening?”
He explained that placing the 25% penalty on smuggled vehicles is till to the advantage of the smugglers, considering what they are supposed to pay if they are bringing in the newer vehicle through the seaport.
“Even with the 25% penalty levy, it still favours them particularly the newer vehicles there because in the port here, you will pay 35% duty and 35% levy and what it means is that if you bring in your vehicle, maybe 2019 model, you pay 35% duty and 25% levy as penalty.
According to him, “Government should begin to create enabling environment and one of the enabling environment is by reducing the levy on new vehicles. If you look at what is happening now, the rate at which we are importing used vehicles; particularly damaged vehicles is increasing because the duty payable on newer vehicle is too astronomical, it is killing the economy”
“So, government should just abrogate the levy, so that people will now come back to the seaport. The moment this is announced, I assure you that more than 70% of these people will divert their vehicle importation back to the ports”, he submitted.
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