FG Urged To Suspend New Vehicle Import Tariff

The federal government has been urged to suspend the new vehicle import tariff till local assembly plants  begin full operations in the country.
Chairman of the Abuja Car Dealers Association, Alhaji Auwal Rilwan, who made the appeal last week in Abuja, said implementing the policy would also lead to massive job loss, especially among the youth.   
Rilwan urged the government to first put the necessary infrastructure in place for local manufacturers to produce enough cars to meet demand before discouraging importation.

The federal government has been urged to suspend the new vehicle import tariff till local assembly plants  begin full operations in the country.
Chairman of the Abuja Car Dealers Association, Alhaji Auwal Rilwan, who made the appeal last week in Abuja, said implementing the policy would also lead to massive job loss, especially among the youth.   
Rilwan urged the government to first put the necessary infrastructure in place for local manufacturers to produce enough cars to meet demand before discouraging importation.
The new tariff, which the Nigeria Customs Service, NCS began implementing on May 1, involves a 35 per cent duty and another 35 per cent levy on imported vehicles.
It is a key component of the Nigeria Automotive Industry Development Plan, NAIDP aimed at limiting importation of used vehicles to encourage local manufacturing of new and affordable ones.
Before now, importers and dealers were paying 20 per cent and two per cent as duty and levy respectively on imported cars, while commercial vehicles attracted 10 per cent flat.
But Rilwan stated that the new tariff had doubled the clearing cost of imported cars thereby impacting negatively on the country’s car market.
“I have some cars waiting to be cleared at the Lagos ports but Customs is telling me to pay 35 per cent duty and another 35 per cent levy on them.
“Before now it cost about N250, 000 to clear one car but with this policy we are going to be paying at least N400, 000.
“If you add the cost of ancillary services like transportation, loading and off-loading, among others, very soon Nigerians will stop buying ‘Tokumbo’ cars due to high price.   
“Government should wait for the investors that are coming to start producing affordable vehicles to meet local demands before limiting importation,’’ he said.
Director General of the National Automotive Council, NAC, Engr. Aminu Jalal, had said that without the increase in tariff investors would not be encouraged to establish assembly plants in the country.
“Unless the hike in tariff starts, no company is ready to invest hundreds of millions of dollars in setting up assembly plants in the country.
“I know people will say let them come, set up their plants and produce before the new tariff kicks in but the truth is they will not do it.
“Except the new tariff starts, the auto policy is just another government promise and no investor will take action on promise because it will mean we are not serious,’’ Jalal stressed.
He had also allayed the fears of local marketers about being thrown out of business, saying the council would register them to be dealers to the local manufacturers.