Multiple Taxation Making Car Dealership Unprofitable, Costly — Dealer 

L-R: CFO, Car45, Olajide Adamolekun; CEO Cars45, Etop Ikpe; CEO De Feon Autos Ltd, Olaniyi Olukitibi and Head, Commercial Operations and Marketing, Cars45, Mayokun Fadeyibi at the launch of the second Carsbazr retail franchise lot with De Feon Autos in Ikeja, Lagos last week

 A Motor Dealer and the Managing Director of De Feon Automobile, Niyi Olukitibi, on Thursday said that the multiple taxations being imposed on car dealers in the country is having a negative effect on the business. 

 Olukitibi said this in an interview with the News Agency of Nigeria (NAN) on the reason the prices of used cars skyrocketed in the country. 

 He said that all the levies been collected by the government were having negative impact on the pricing which he contended that it was responsible for making some cars out of reach for the average income earners. 

“Sometimes, the local government officials are not helping matters, they come with all sorts of bills to settle just on one car alone spending that much, and how can we sell that car cheap?” 

“We are faced with a lot of multiple taxes, ranging from parking to warehousing; consumption tax, Value Added Tax (VAT) and all manners of taxation, even some that we have paid for will be repeated”. 

“If we calculate the amount of expenses incurred on a car then probably it is more than its market price where it was purchased from. 

“Right from import duty to waybill, to cost of freight which we have to pay, then again pay another VAT, note that we still pay VAT at the end of buying,” he said. 

Olukitibi said that things should be made easier for the populace, especially the businessmen and the end users of their product and not necessarily bogging them with multiple taxes. 

 “What we need is a friendly environment that allows business to grow and also allow affordable purchase by the end users and not a situation whereby taxes takes away all the profit or make goods unaffordable. 

“We need to revisit the tax regime, especially in Lagos because whenever the LG officials comes around, it is one type of levy or the other, these are adding up to the price of cars. 

“We appreciate Nigerians who are struggling to buy these cars and we always want to serve them better with verified cars and that is the reason we are in partnerships with Cars45. 

“Government needs to look into creating an enabling environment for business to thrive so that the average people on the street will have smiles on their faces,” he said. 

De Feon Automobiles and Cars45 are into franchise aimed at making verified cars affordable to Nigerians. 

Cars45 provides one of a kind platform for used cars in Nigeria, giving a private network of buyers the fastest way to find the perfect cars that fits buyers’ needs.