Review 70% duty on car imports until made-in-Nigeria vehicles saturate market—Group
Chairman of the Auto-dealer Association, Owode Area of Ogun State, Samuel Johnson, has called on the Federal Government to review the automotive policy, which imposes 70 per cent levy on imported vehicles, pending when credible investors have given serious signs of investments in mass production of made-in-Nigeria vehicles.
He said it is stifling the economy and jobs of many Nigerians in the motor business.
According to him, allowing a regulation that could not achieve its target for more than three years does not make enough business meaning.
In his further submission, the Auto dealer argued that “It is not enough for the government to ban the importation of vehicles through the land borders. The Federal Government needs to review the auto policy, fix the Apapa road and make the port attractive for business”.
Johnson recalled that the levy introduced by former President Goodluck Jonathan to support the local industry was yet to yield the expected results before the Federal Government banned the importation of vehicles through the land orders recently.
It would recalled that since the ban on land borders, there has not been any known investor coming in to begin motor plant, rather government is working on a strange plan to sell off Peugeot Assembly Plant in Kaduna which is yet to materilaise.
Giving more details on the origin of the harsh tariff, Johnson said, car importers were paying 20 per cent duty on imported vehicles before the last administration suddenly introduce 35 per cent duty on imported vehicles.
While calling the government to slash the rate on new vehicles by 35 per cent to make the seaport a hub in the sub region, he revealed that high port charges and poor access road to the Lagos ports, contributed immensely to the diversion of cargoes to neighbouring countries’ ports, thus, leading to loss in government’s revenue.
