Ahead of its commencement on January 1st 2015, some automobile dealers in Lagos State have requested the federal government to offer explanation about the 35 per cent levy, which is expected to be collected on all imported vehicles, in addition to the 35 per cent duty.
Even though the National Automotive Council (NAC) has said that there is going back in the collection as from next year, the dealers said that they are yet to understand what the 35% levy is; calling on the government to sensitise the immediate public for a better understanding.
Ahead of its commencement on January 1st 2015, some automobile dealers in Lagos State have requested the federal government to offer explanation about the 35 per cent levy, which is expected to be collected on all imported vehicles, in addition to the 35 per cent duty.
Even though the National Automotive Council (NAC) has said that there is going back in the collection as from next year, the dealers said that they are yet to understand what the 35% levy is; calling on the government to sensitise the immediate public for a better understanding.
The dealers who spoke with Auto Port Weekly, last week called on the Minister of Finance, Dr. Ngozi Okonjo Iweala and her counterpart from the Ministry of Trade, Investment and industry, Dr. Olusegun Aganga to explain what the levy entails.
Director at Sunrise Motor Dealers Association, Pastor Andrew Uzor said that, “the Federal Government has commenced the collection of 35% duty on imported vehicles, but the one we are worried about which needs explanation is the 35% levy which we the dealers and importers don't understand "
"Is the levy, referring to Value Added Tax which is VAT or is levy for Customs collection, or NPA collection, who is to collect the levy?, we want the government to spell it out for us to understand so that we can know where we are going", he stated.
He noted that there are arbitrary charges on the part of the government and the terminal operator, adding that before the imported vehicle leaves the port to the park, extra charges are imposed on the vehicle which in turn incurs translates to additional cost to vehicle at selling point.
Uzor added that, "if the federal government fails to spell it out to the public people will continue to patronise neighbouring ports to bring in vehicles".
He urged the two ministers to carry out a massive sensitization programme for importers and dealers for a better understanding of what the 35 per cent levy is all about.
According to him, “the ambiguity of the government charges on imported vehicles will scare importers from our ports and smuggling will increase again, which I believe is not too good for our economy".
On his part, an importer and dealer; Stephen Uzonuoma stated that the levy in question makes no sense because according to him, it is baseless.
The dealer demanded for a breakdown of what the levy will entail and to which account of the government will such monies go to when the collection will commence in January 2015.
According to him, the 35% policy on imported vehicles is part of effort to discourage import of used vehicles and a ploy to frustrate the common man who is trying to make ends meet through sales of vehicles.
He further noted that the two ministers need to put in place public enlightenment programme for a better understanding of the policy as it concerns the 35% levy.
Also responding Azubuike Uzuaka , a vehicle trader affirmed that there is more to the additional payment outside the 35% duty adding that the 35% levy poses a serious threat to the importers and dealers all over the federation.
"We are confused about the 35% levy that will commence in January, we don't know what this levy is bringing to our table, therefore we need a better understanding and definition of what it is", he stated.
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