The implementation of the 35 per cent import levy on used cars will now begin on June 30, 2015 as the Federal Government has once again shifted the commencement date by two months.

In a move to encourage local assembling of vehicles, the government had in September 2013 raised the import tariff on fully-built cars and used vehicles from 22 per cent to 70 per cent made up of 35 per cent duty and 35 per cent levy.

It also announced a zero per cent tariff on Completely Knocked Down units (vehicles) and five per cent to 10 per cent on Semi Knocked Down units.

The first phase of the policy, involving the payment of the 35 per cent duty came into effect in February 2014.

The Director-General, National Automotive Council, Mr. Aminu Jalal, informed our correspondent through a text message on Monday that a circular had been issued by the Federal Ministry of Finance deferring the implementation of the levy to June 30. He did not give any reason for the postponement.

When the implementation of the second phase was first moved from July 1, 2014 to January 1, 2015, the government had said that it was to enable local vehicle assembly plants to ramp up production in order to meet the nation’s demand for brand new vehicles.

When it was last month deferred again to April 30, 2015, the Federal Government said through NAC, an agency of the Federal Ministry of Industry, Trade and Investment, that the postponement was due to the delay in establishing a vehicle finance scheme.

Jalal had said, “The arrangement for the establishment of the affordable vehicle finance scheme suffered a delay of about four months due to the Ebola Virus Disease. The staff of the collaborating bank, Wesbank of South Africa, delayed their planned trip to Nigeria to set up operations from September 2014 to January 2015.

“Hence, the new date for the start of operations of the financing scheme is April 2014. Accordingly, the Minister of Finance has been asked to extend the levy deferment on used cars to April 30, 2015.”

Nigeria imports about 400,000 units of vehicles annually, with about 300,000 being second-hand. As a result of the devaluation of the naira and the subsequent rise in the cost of buying used vehicles and clearing them at the nation’s seaports, auto dealers at the Berger Yard Auto Market in Lagos have reduced the volume of importation by over 50 per cent.

Port and Terminal Multi Services Limited, the largest terminal for vehicle imports, has recorded a 61 per cent drop in the volume of imported vehicles. The terminal had in January 2014 handled 16,000 units of vehicles, while only 6,200 passed through it last month.

Efforts to get a response from the Special Adviser to the Minister of Finance on Media, Mr. Paul Nwabuikwu, proved abortive as he neither picked his calls nor respond to a text message sent to his mobile telephone.
http://www.punchng.com/business/business-economy/35-levy-on-tokunbo-vehicles-begins-july-1/

Hmm

OK.

The federal government should put this levy increment on hold, till we have all the necessary tools in place to make it a success.

Don't worry about the levy 35% increase vs 61% reduction those people can't even do simple arithmetic the levy should disappear by March 28 and by May 29 Nigerians should be able to buy car a little cheaper so all should postpone their purchase date. See govt make policy and keep postponing because they really can't control anything supply determine the Nigerian market when you mess with it you destroy the market. Lebanese will import stripped down unit for 0-5% Nigerians will pay up to 70% well done geniuses. What determines if a vehicle is semi-knockdown because that Nissan that they said was assembled in Nigeria is semi knockdown

Ghen ghen.

sultaan:
Don't worry about the levy 35% increase vs 61% reduction those people can't even do simple arithmetic the levy should disappear by March 28 and by May 29 Nigerians should be able to buy car a little cheaper so all should postpone their purchase date. See govt make policy and keep postponing because they really can't control anything supply determine the Nigerian market when you mess with it you destroy the market. Lebanese will import stripped down unit for 0-5% Nigerians will pay up to 70% well done geniuses. What determines if a vehicle is semi-knockdown because that Nissan that they said was assembled in Nigeria is semi knockdown

Not enough.

There should be a 70% tariff on imported vehicles.

The money collected (people will still buy) should be used to setup a manufacturers financial bank of the auto sector.

CityNG:
Not enough.

There should be a 70% tariff on imported vehicles.

The money collected (people will still buy) should be used to setup a manufacturers financial bank of the auto sector.

Sounds like someone is setting himself up for government job because it is easier to set up some phantom idea that has never worked with other people's money.

Is all these decades on NAC levy not a lesson on the main cause of these failures

Ask Iso glass, Oluwa glass and PAN what they did I with their share sometime ago.

CityNG:
Not enough.

There should be a 70% tariff on imported vehicles.

The money collected (people will still buy) should be used to setup a manufacturers financial bank of the auto sector.

Ideas from a Philistine..... Why not start manufacturing before imposing unreasonable levies.... Philistine?

SmartChoices:

Ideas from a Philistine[b][/b].... Why not start manufacturing before imposing unreasonable levies.... Philistine?

wicked!

Read the following article
http://thenationonlineng.net/new/nac-to-roll-out-made-in-nigeria-vehicle-finance-scheme/
Posted by: Our Reporter in Business March 1, 2015

The National Automotive Council, NAC, has partnered with WesBank of South Africa to roll out made-in-Nigeria vehicle finance scheme to come into effect before the end of 2015.
In a statement by the south African bank, “The WesBank team had interactive session with potential partners including selected vehicle dealers to obtain first hand information to get acquainted with certain dealership practices peculiar in Nigeria.”
The statement further said, “The NAC scheme has been designed around a network of vehicle dealers, manufacturers, distributors from whose floor the purchase process will begin.
“Earlier, NAC had signed a Memorandum of Understanding with First Rand Bank in Johannesburg, South Africa mandating WesBank to manage consumer vehicle financing for Nigerian assembled cars.”
The Director General, NAC, Aminu Jalal, maintained that the federal government approved the Nigeria Automotive Industry Development Plan, NAIDP, to attract investment from vehicle manufacturers globally and grow the supply of locally manufactured vehicles.
He said, the MOU would allow WesBank to work closely with NAC to develop vehicles financing solution, specifically for those built in Nigeria with the aim of making them readily affordable for the average Nigerian car users.

http://www.ngrguardiannews.com/2015/03/manufacturers-promise-to-fill-vacuum-as-vehicle-import-drops/

http://www.proshareng.com/news/19796

http://www.oxfordbusinessgroup.com/news/nigeria%E2%80%99s-expanding-auto-market

sultaan:
Read the following article
http://thenationonlineng.net/new/nac-to-roll-out-made-in-nigeria-vehicle-finance-scheme/
Posted by: Our Reporter in Business March 1, 2015

The National Automotive Council, NAC, has partnered with WesBank of South Africa to roll out made-in-Nigeria vehicle finance scheme to come into effect before the end of 2015.
In a statement by the south African bank, “The WesBank team had interactive session with potential partners including selected vehicle dealers to obtain first hand information to get acquainted with certain dealership practices peculiar in Nigeria.”
The statement further said, “The NAC scheme has been designed around a network of vehicle dealers, manufacturers, distributors from whose floor the purchase process will begin.
“Earlier, NAC had signed a Memorandum of Understanding with First Rand Bank in Johannesburg, South Africa mandating WesBank to manage consumer vehicle financing for Nigerian assembled cars.”
The Director General, NAC, Aminu Jalal, maintained that the federal government approved the Nigeria Automotive Industry Development Plan, NAIDP, to attract investment from vehicle manufacturers globally and grow the supply of locally manufactured vehicles.
He said, the MOU would allow WesBank to work closely with NAC to develop vehicles financing solution, specifically for those built in Nigeria with the aim of making them readily affordable for the average Nigerian car users.

http://www.ngrguardiannews.com/2015/03/manufacturers-promise-to-fill-vacuum-as-vehicle-import-drops/

http://www.proshareng.com/news/19796

http://www.oxfordbusinessgroup.com/news/nigeria%E2%80%99s-expanding-auto-market

What about this?..... Still no reason for those Philistines to impose unreasonable fees...bearing in mind that the national transport system is virtually non existent!

SmartChoices:

Ideas from a Philistine..... Why not start manufacturing before imposing unreasonable levies.... Philistine?

Sultaan cityng deactivated his account! Sad

10 days and th BS idea goes no where those who want to make money have made some coins and have been kicked out of policy making because of their bad ideas.

How has things move forward in auto manufacturing in the last 2 years what kind of capacity increase has the policy made but make these people money