The Nigerian Automotive Manufacturers Association (NAMA) yesterday, debunked claims that prices of vehicles in the country have been officially increased in compliance with the implementation of the automotive policy that commenced on Tuesday.
According to the body, only speculative dealers have decided to increase the prices of their old stock unjustifiably, adding that measures were underway to address the trend.
The Nigerian Automotive Manufacturers Association (NAMA) yesterday, debunked claims that prices of vehicles in the country have been officially increased in compliance with the implementation of the automotive policy that commenced on Tuesday.
According to the body, only speculative dealers have decided to increase the prices of their old stock unjustifiably, adding that measures were underway to address the trend.
Under the new automotive scheme which commenced with full implementation on Tuesday, the Federal Government raised the duty and levy payable on imported new and used cars from 20 per cent to 70 per cent, pointing out that the initiative was aimed at encouraging local production of automobile.
In a statement signed by the association’s Executive Director, Arthur Madueke and made available to our correspnodent yesterday, the association noted that its members supports government’s decision and were working with government in making sure that vehicles were not only available for consumers but also ensure that the standard and prices compete favourably with what is obtained in any motor vehicle manufacturing industry in the world.
“We make bold to salute the courage, resilience and patriotism of the over 19 other assembly plants who identified with the aspirations of the government and the people of Nigeria to be one of the industrialised economies of the world with the development of an engineering based, symbolized by a growing and vibrant automotive industry.
“Despite the existence of some infrastructural challenges, we know that the growth and development of this industry is a vital impetus that is capable of engineering massive employment for Nigerians.
“In the medium term, the prices of locally produced vehicles will gradually gravitate downward, a scenario that played out in the communication industry a few years back and even in the aviation industry.
“We pledge our support to the Nigerian people that there would be no increase in the prices as being heralded by those who wish themselves well at the detriment of the growth and development of Nigeria”, Madueke added.
It could be recalled that the National Automotive Council had explained that Fully Built Units (FBU) cars falling under H.S.Code 87.03 should attract a duty of 35 per cent and 35 per cent levy.
NAC said: “All FBU import (except used vehicles) with Bill of Lading dated not later March 31, 2014 and arrival date not later than June 2014 will pay the old rate, irrespective of the dates of opening of form ‘M’ and the letter of credit.
“Used vehicles will be imported at 35 per cent without levy till June 30th, 2014 (Now December 31, 2014) renewable as required by the Ministry/NAC, to manage market conditions.
“Fully Built Unit (FBU) Commercial vehicles falling under H.S. Code 87.02, 87.04, 87.06, 87.16, shall attract 35 per cent duty without levy.
“Fully built tractor under H.S. Code 87.01 shall attract 0 per cent duty without levy, until local capacity is ascertained by NAC.”
On the other hand, Local Assembly plants shall import their Completely Knock Down (CKD) at zero per cent duty, Semi Knocked Down (SKDI) at five per cent duty and Semi Knocked Down (SKD11) at 10 per cent import duty.
According to NAC, all machinery and equipment imported for the purpose of vehicle assembly shall attract zero per cent import duty and be free of Value Added Tax (VAT).
Already, the first phase of the policy involving 35 per cent duty increase has come into effect while the second phase of 35 per cent increase in levy for new cars commenced on Tuesday
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