|Join Nairaland / Login / Trending / Recent / New|
Stats: 1,349,822 members, 2,014,306 topics. Date: Sunday, 26 April 2015 at 04:45 PM
|70% Vat And Levy Duties On Imported Vehicles To Commence In January? by ccaramel(f): 1:51pm On Nov 19, 2013|
Can anyone corroborate this? I just heard through the grapevine that dutes will be increased and the memo has been approved.
|Re: 70% Vat And Levy Duties On Imported Vehicles To Commence In January? by ccaramel(f): 4:04pm On Nov 19, 2013|
This is definitely confirmed. Custom duties starting from January will be more than double on imported vehicles!!!! You are advised to get your bill of ladings dated before January 10. A word is enough for the wise
|Re: 70% Vat And Levy Duties On Imported Vehicles To Commence In January? by ccaramel(f): 9:45pm On Nov 20, 2013|
FG slams 70% duty on imported cars, 35% on buses
Wednesday, 20th November, 2013
The Federal Government has hiked the import duty payable on both new and fairly used vehicles to 70 per cent, SHIPS & PORTS DAILY can authoritatively reveal.
A memo by the Coordinating Minister for the Economy/Finance Minister, Dr. Ngozi Okonjo-Iweala, sent to the Comptroller-General of Nigeria Customs Service (NCS), Dikko Inde Abdullahi, last week, directed that imported fully built unit (FBU) cars shall now attract 35 per cent duty and 35 per cent levy, totalling 70 per cent charges.
The increase in duty, from the present 20 per cent, is in line with the Federal Government’s new automotive policy announced recently by the Minister of Trade and Investment, Mr. Olusegun Aganga.
Aganga said the policy, which had attracted mixed reactions from Nigerians, is aimed at encouraging local production of vehicles and reviving the auto industry.
The prices of imported vehicles are expected to rise astronomically as a result of the increased import duty while some vehicle importers have expressed fears that the new policy could promote smuggling activities. Some analysts have predicted as much as 250 per cent rise in imported vehicle prices from January next year when the new duty regime comes into force.
The Finance Minister’s memo also stated that the duty on buses has also been raised from 10 per cent to 35 per cent without levy.
The minister’s directive dated November 14, 2013, and also sent to Federal Inland Revenue Service, destination inspection service providers namely Cotecna Destination Inspection Limited, Global Scan System and SGS Nigeria Limited stated that approval for the introduction of the new fiscal measures was granted by President Goodluck Jonathan.
On the other hand, as part of the policy, local auto manufacturers, like Innoson Vehicle Manufacturing Ltd, Nnewi; VON Automobile (formerly Volkswagen), Ojo; National Trucks Manufacturers, Kano; PAN Nigeria, Kaduna and other auto makers in the country, will no longer pay duties or levies on their Completely Knocked Down (CKD) sets imported from their overseas partners while Semi-Knocked Down (SKD) components for the local production of vehicles shall attract only five per cent duty without levy.
The memo explained that the new measures, coming about six weeks after the Federal Executive Council approved a far-reaching automotive industry development plan, were designed to boost activities in the industry and also attract foreign investments.
“The above measures are to create an environment to support existing assembly plants and attract other Original Equipment Manufacturers who have expressed interest in Nigeria”, the minister remarked.
|Re: 70% Vat And Levy Duties On Imported Vehicles To Commence In January? by Nobody: 11:06pm On Nov 20, 2013|
I honestly thought this policy was left to die a quiet death.
|Re: 70% Vat And Levy Duties On Imported Vehicles To Commence In January? by ccaramel(f): 11:15pm On Nov 20, 2013|
I guess they meant business....
|Re: 70% Vat And Levy Duties On Imported Vehicles To Commence In January? by ccaramel(f): 1:02pm On Nov 21, 2013|
Order your used vehicles NOW to avoid high tariff in January.
|Re: 70% Vat And Levy Duties On Imported Vehicles To Commence In January? by ccaramel(f): 8:50pm On Nov 22, 2013|
The Federal Government has raised tariffs on imported cars and buses, with the increase in tariffs on both new and used cars reaching 50 per cent. The increase will take effect from January 2014.
Imported fully built unit (FBU) cars, which total tariffs stood at 20 per cent in the past, will now attract 35 per cent duty and 35 per cent levy, totalling 70 per cent charges.
The new policy was contained in a memo issued by the Coordinating Minister for the Economy and Finance Minister, Dr. Ngozi Okonjo-Iweala, which was sent to the Comptroller-General of Nigeria Customs Service (NCS), Dikko Inde Abdullahi, in which the minister also stated that the duty on buses had also been raised from 10 per cent to 35 per cent without levy.
FG aims at cutting down importation of automobiles to encourage production of cars and buses in the country. The government also hopes this would create an environment to support existing assembly plants and attract other Original Equipment Manufacturers who have expressed interest in Nigeria
As part of the policy, local auto manufacturers will no longer pay duties or levies on their Completely Knocked Down (CKD) sets imported from their overseas partners while Semi-Knocked Down (SKD) components for the local production of vehicles shall attract only five per cent duty without levy.
“We welcome the initiative. It was long overdue. This is one policy that will help the local industries discover themselves,” said Stallion Motors spokesman, Mr. Manny Philipson, who spoke with LEADERSHIP correspondent on the issue on November 21, 2013, Thursday.
With the policy becoming effective in January next year, prices of imported cars and buses are expected to rise astronomically as a result of the increased import duty. Analysts predict as much as 250 per cent rise in prices of imported vehicles.
Some importers have expressed fears that the new policy could promote smuggling activities.
The minister’s directive dated November 14, 2013, was also sent to Federal Inland Revenue Service, destination inspection service providers at the nation’s seaports and airports, namely Cotecna Destination Inspection Limited, Global Scan System and SGS Nigeria Limited.
It stated that the approval for the introduction of the new fiscal measures was granted by President Goodluck Jonathan.
READ MORE: https://news.naij.com/52606.html
|Re: 70% Vat And Levy Duties On Imported Vehicles To Commence In January? by 234GT: 8:56pm On Nov 22, 2013|
I hope the new rates won't affect bicycles.
|Re: 70% Vat And Levy Duties On Imported Vehicles To Commence In January? by AMADU77: 9:10pm On Nov 22, 2013|
I hope the new rates won't affect condoms
|Re: 70% Vat And Levy Duties On Imported Vehicles To Commence In January? by AMADU77: 9:15pm On Nov 22, 2013|
Just a simple question, if they r looking only for how to create jobs !!! So why raising d tax on Autos n removing d tax on Textile
For every 1 car factory to open another 10 textile factories were shut down
Wallahi I no understand anytin againoooooo
Its all azonto
|Re: 70% Vat And Levy Duties On Imported Vehicles To Commence In January? by oliverjiad(m): 6:06am On Dec 17, 2013|
sir/ma all this afe rumorr on %70 duty and levy on importation,no body can pay that huge amount into the federal government account,so are they telling me that ordinary toyota tiny will be sold at the rate of #3000000 if the duty will be set to %70,sir/ma i am an agent this is wat they say every year in mr aganga come out on radio and said they only want to building nigerian cars via ckd inportation not to compound wahala for the massive but the said nigerian vehicle is yet to be decided so i believe no body is ready to buy an old car at a huge amount
relaxe and feel free and order ur goods az normal duty
|Re: 70% Vat And Levy Duties On Imported Vehicles To Commence In January? by buyAride: 7:49pm On Dec 18, 2013|
First, before l delve into this "duty and tax regime palaver", allow me to digress a little, about you (ccaramel).
Somehow, you saw a thread l was involved in and you wade-in. http://www.nairaland.com/1226678/triple-a-auto-auctions-ltd-adeosun/46.
Though the issue is being resolved as we speak, I have gone back to read all the comments on that thread during that period and l can say that YOU Madam, is one Nigerian that can be trusted because you did not see "black" and call it "white". A very rare nature amongst we Nigerians today!
People like you that stand for "Truth and Justice" are people in my own opinion, who are RELIABLE AND CAN BE TRUSTED.
I want to thank you for your staunch position on that matter, that what is wrong, is patently wrong.
I have "bookmarked you" strongly and l hope to do "business" with you in the nearest future.
I give you a thousand salute and standing ovation. You have earned my respect.
End of Digression.
On the topic itself, in my own opinion, what Nigeria needs are policies that would DEVELOP OUR OWN LOCAL CAPACITY TO PRODUCE GOODS.
Let us observe that whether a vehicle was imported by "Individual Dealers" like Ccaramel (Tokunbo) or imported by "Corporate Vehicle importers" like Stallion or imported as CKD or SKD by "manufacturers" like Innoson or VON or PAN, that vehicle is still an IMPORTED VEHICLE and it is imported using our scarce foreign exchange and the major beneficiary of such import is still the "Home Country" where the whole vehicle or its CKD/SKD parts ......was manufactured.
This current policy is just a case of taking from Peter, to pay Paul. It has taken business from individual importers (as well as robbed ordinary Nigerians of their ability to own a simple Tokunbo vehicle!) ... and given such business to bigger players like Nissan, Innoson and PAN.
*Assembling a Vehicle (which is what importation of CKD and SKD is) will create jobs by providing employment for some people.
*Likewise, importing a Tokunbo vehicle by individual dealers as currently done, provides jobs for some people!
But neither of the two can turn Nigeria to a vehicle manufacturer overnight.
Neither of the two will create that infrastructure that can transform Nigeria to a vehicle manufacturer!
Vehicles are manufactured in sophisticated, automated and power-hungry plants.
One can ask, how and what led to the death of of PAN, VON and other assembly plants that thrived in Nigeria in the late 70's to early 80's?
Answer: Corruption and a dearth of power supply are the two most important factors.
At less than 3,000 MW of national electricity production, where is the power going to come from, to run any expansive vehicle Assembly? (let us not even dream of manufacturing for now).
As it is now, like l mentioned earlier, the best that can happen is that mos of the customers of the individual vehicle dealers wont be able to afford to purchase such vehicles due to its prohibitive cost. They wont just be able to afford a vehicle.
On the other hand, the likes of Innoson, PAN, VON, Stallion, will simply increase their "profit margin" (due to their reduced duties payable), and perhaps increase the number of CKD/SKD they are importing but it will have a marginal effect on the exorbitant price of their vehicles (as we have seen over the years) nor its affordability by most Nigerians. (okay, the big shots and corporate customers who buy tear-rubber will still be able to afford it, even if you raise the price to dear heavens.)
If the govt is truly sincere in its stated objective to "make Nigeria a LOCAL PRODUCER of vehicles", it must re-order its priorities like below:
1.) Electricity: We need to astronomically increase our electric power base to nothing less that 30-40MW annually. A cross-check of ALL vehicle manufacturing countries anywhere in the world (including South Africa) will show that non of them has less than this value of annual electricity production. It is on this basis that the industrial revolution can start. We cant even power our house-bulbs successfully!
Vehicle manufacturing plants dont operate for three hours and shut down for three days due to lack of electricity! or operate continuously on "Electricity Generator" for days, if they want to make profit
2.) Iron and Steel: Govt needs to resuscitate and establish new Iron and Steel Industries.
We use to have a few, some years back but they have all been sold at "give-away prices" to the cronies of those in govt whose only interest back then is simply "profiteering" through ASSET STREAPING (buy it cheap enough so that the assets it contains, if sold, will still make you a decent profit).
Now, all our Steel Rolling mills and Iron Ore plants are DEAD!
How would you "MANUFACTURE" Vehicles when you dont have such "heavy" raw materials produced locally? Importing them is just back to square one, like importing Tokunbo vehicles but its just more silly!
3.) Petrochemical: This is similar to Iron and Steel as more components of Vehicles are made from compound Petrochemical materials. We need to double our effort on our Petrochemical industries so that even the derivatives from such "breakdown" of crude oil will make us less dependent on imports, provide more jobs here and develop our capacities and capabilities.
4.) Transportation network: Though of less importance, we need to develop our transport infrastructures, especially rail and Water transport. This will pay-off in that imported goods (car parts, bulk raw materials, e.t.c) can be moved around cheaply and safely.
Now, if all the above is put into place ..or at a level of say 60%, the govt would have shown "seriousness and cranial ability" in policy formulation. It is at that juncture it can make Tokunbo vehicle importation "unattractive" using financial policies like it just did, NOT BEFORE THEN!
We wont need to be "begging Manufacturers to relocate to Nigeria" at that point. These people are "business men" whose sole purpose is to break-even and make profit and their sole attraction/consideration to a locality is "profitability or its near/immediate prospect"!
Nigeria as it is today, without all the above facilities, is NOT PROFITABLE for vehicle manufacturing/Assembling [b]except where such 'foreign business men" have identified a loophole of corruption ....that can fill the gap!
Our Leaders, from president Jonathan to his Finance, Economics, Industry and Customs bigwigs should stop making us a laughing stock in the international community.
STOP putting the Cart, before the Horse! It does not work that way, for crying out aloud![/b]
This policy would fail woefully like many other ill-thought out previous policy but in the process, a lot of Nigerians would have been made to suffer unnecessarily. Now that is wickedness, in my own dictionary!
|Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health |
religion celebs tv-movies music-radio literature webmasters programming techmarket
Nairaland - Copyright © 2005 - 2015 Oluwaseun Osewa. All rights reserved. See How To Advertise. 134