Even as the implementation of 70% levy and duty on imported used vehicles may commence tomorrow(July 1, 2014), stakeholders have expressed high hopes that the policy implementation date may be extended.
The stakeholders who were reacting to the possible rethink by the Federal Government to shift ground for another six months on the automotive policy, expressed doubts if truly the implementation will commence as stated.
Even as the implementation of 70% levy and duty on imported used vehicles may commence tomorrow(July 1, 2014), stakeholders have expressed high hopes that the policy implementation date may be extended.
The stakeholders who were reacting to the possible rethink by the Federal Government to shift ground for another six months on the automotive policy, expressed doubts if truly the implementation will commence as stated.
A cross section of operators namely: vehicle importers, freight agents and automobile dealers who spoke to Auto Port Weekly in Lagos last week, appealed to the federal government to return to status quo of 10% levy, because according to them, vehicle assembly by investors has not commence in full swing, enough to meet the demand of Nigerians
Following the possible extension, the operators also called on the federal government, through the ministries of Finance and Trade and Investment to issue a circular to the Nigeria Customs Service.
According to them, there is the urgent need by the federal government to notify Customs on the extension.
A freight forwarder; Comrade Pius David said that there is the need for the government to extend the policy and even go back to the former 10% charges on imported vehicles.
David noted that although the automotive policy is good, investors may frustrate its implementation.
According to him, the minister of finance should issue a circular to the Nigeria Customs Service for the extension on the policy.
He said without any proper documentation from the ministry to the customs, the rumoured extension may cause confusion among the operators.
David noted that, “even though duty payment is 35% as at now, my own advice to the government through the minister of finance is to issue a circular to the customs informing them about a substantive extension."
" Apart from that since the investors are not fully ready to commence manufacturing of vehicles in full, I will also advise that the government should return to status quo of 10% duty payment."
He described the 70% duty and levy charges on imported vehicles as exploitation on the part of the government, adding that the adequate research methodology was not carried out by the government.
The port activist further stressed that there is still the need for due consultation with the relevant stakeholders in the sector, pointing out that the policy has made importers to shun Nigerian ports.
Similarly, an automobile dealer; Mr. Godfrey Ogbeide expressed doubts about the July 1st deadline, even as he described the government as a confused institution.
The automobile dealer lamented that the 35% duty on imported used vehicles has affected the sales of vehicles, adding that it has been difficult for them to sell since its collection began.
According to him, the Nigeria Customs Service commenced the implementation of the 35% duty on imported vehicles in May ,from its original 10%, pointing out the policy has resulted in series of protest by the freight agents at the seaports in Lagos.
Also expressing doubts about the deadline, an importer of vehicles; Okosun Joesph told our correspondent that there has been a massive importation of vehicles in the last one week because of the imminent deadline.
Okosun revealed that importers of vehicles are massively importing vehicles from Europe and America because of the fear of paying high duty and levy.
He said importation of used vehicles into the country has helped reduced unemployment in the country, adding that importation of used vehicles had enabled some people who could not afford a brand new car to own one.
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