A former National President of the National Association of Government Approved Freight Forwarders (NAGAFF) Dr. Eugene Nweke has taken the federal government to the cleaners over the automotive policy, describing the policy as an elite policy which according to him, is meant to suit the interest of a few.
Nweke who said this last week in an interview with Shipping Position Daily in Lagos, also said that any policy that does not drive the interest of the masses in other to empower them will crash.
He also charged the Controller General of Customs, Col Hammed Ali (Rtd) to call for the scrapping of the automobile policy instead of canvassing for a reduction on duties payable on imported vehicles.
The Ex-NAGAFF boss also questioned the rationale behind paying over 20% duty on imported vehicles when there is a World Trade Organization agreement that the maxim um duty that can be placed on an commodity in any country is between 0% to 20%.
Explaining, he argued that: “That is why this there policy; rather than addressing the issue it is causing problem; we saw all these that is why we opposed the policy. The policy was an elite policy, to suit the interest of elites, so where are we today. Any policy that does not drive the masses to empower them and care for their economic well-being will always crash”.
“So the CGC rather than saying that the duty on imported vehicles should be reduced, let him go on and condemn the auto policy, he should tell the Federal Government that the auto policy should be jettisoned. Auto policy has 35% import levy, why should it be like that, 35% levy is above the single digit specification made in that convention which was signed by Okonjo Iweala”, he added.
“What the CGC should be saying is for us to scrap the auto policy, let us scrap the auto policy in its totality. Why should we import a vehicle because we believe that they are assembled here in Nigeria while they are not and you are paying 20% for it, where it is done? If you buy any 2017 or 2018 vehicle depending on the make you will be spending minimum of N4million to N5million. Then add that tariff to the price of that vehicle, then how much do you think will be the cost of that vehicle, whereas you can go to Cotonu and buy the same vehicle at a reasonable price”, he pointed out.
He however explained that placing a duty above 20% on imported vehicle is an indirect way of making importation of cars contraband in the country.
“The CGC is a commanding officer of an agency of the government a revenue officer, anything that has to do with the reduction on duty has a process. I want you to look at the international convention where Okonjo Iweala represented the federal government; that was some years back that convention was packaged by WTO under the trade initiative. In that convention every country was asked to bring down their duty rates from 0% to 20 %, when a duty rate is above 20% that mean they are restricting the importation of such cargo”, he argued.
“And it was also stated in that agreement that, you don’t ban goods, you can use duty to check the importation of such items. So if the CGC comes to call for a reduction of duties payable on imported vehicles, is it on all items, or overboard of goods. If it is on overboard then it is not different from what has been signed by Okonjo Iweala in the convention. If he is talking on vehicles importation we are now looking at one item, vehicle is one item irrespective of the model and the year. And I want to know that why he made that statement was it not the same customs that collaborated and made duties on vehicles 35% and tariffs 35% under that auto policy”, he said.
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