Two years after the introduction of a new automotive policy, which imposed a higher tariff on imported vehicles, a review may be in the offing, RASHEED BISIRIYU writes

Reprieve appears underway for car dealers and buyers following plans by the Federal Government to review its import tariff on vehicles. This is expected to bring down the cost of new vehicles and increase the tempo of business in the nation's automotive sector.

Sources at the Federal Ministry of Industry, Trade and Investment gave the indication on Sunday that the current 70 per cent tariff on imported cars could get a downward review as a way to force down the prices of vehicles.

Although the National Automotive Design and Development Council, an agency under the ministry, said on Friday that 14 out of the 25 registered automakers had started assembling vehicles in the country, Nigerians have yet to enjoy the expected benefits of the new policy as the prices of vehicles are still high.

Even car dealers have had to adopt different strategies to encourage buyers and boost sales.

The sources, however, said the planned review, which is in tandem with the change mantra of the Muhammadu Buhari-led administration, should not be interpreted as an outright cancellation of the auto policy, which was announced in September 2013.

"It is likely to come in the form of a review of the import tariff on vehicles so as make it easy for people to buy new cars. The decision on the entire auto policy is expected to be part of the economic policy of the government, which will be unveiled as soon as the new ministers settle down," one of the sources said.

Car prices were increased last year by about 60 per cent shortly after the import tariff went up from 22 per cent to 70 per cent, a situation, which made it difficult for many to buy new cars, just as fleet buyers such as corporate firms have had to cut down on the number of vehicles purchased.

The imposition of the new import tariff, which also affects imported used vehicles, according to the government, is to encourage local assembling/production of vehicles, with the attendant benefits of creating more jobs and boosting the nation's economy.

A zero per cent was announced as tariff on imported vehicle components (Completely Knocked Down units) and auto assemblers are also allowed to bring in fully built vehicles at very low import tariff.

But some stakeholders, including major dealers such as Toyota Nigeria Limited, had complained about the timing of the policy and the seeming poor state of the needed infrastructural facilities for the sustenance of local assembly plants.

The Chairman of the automotive group, Lagos Chamber of Commerce and Industry, Mr. Oseme Oigiagbe, confirmed that the group had written to the Presidency and suggested a number of proposals on the implementation of the auto policy, and recently participated in some meeting sessions called by relevant government agencies/officials on the issue.

In an interview with our correspondent, he specifically called attention to the issue of unstable power supply and the commencement date for the new import tariff as contentious issues that needed to be urgently reviewed.

An auto expert and consultant, Dr. Oscar Odiboh, said the review of the tariff was expected, arguing that it was hurriedly put in place by the last regime and should, therefore, be suspended.

"The high tariff (on imported vehicles) should make itself necessary; it should not be forced down on the people. It should be suspended and introduced in phases - one to a five-year period," he said.

Full news. : http://odili.net/news/source/2015/oct/19/802.html

good

400billionman:

Two years after the introduction of a new automotive policy, which imposed a higher tariff on imported vehicles, a review may be in the offing, RASHEED BISIRIYU writes
Reprieve appears underway for car dealers and buyers following plans by the Federal Government to review its import tariff on vehicles. This is expected to bring down the cost of new vehicles and increase the tempo of business in the nation's automotive sector.
Sources at the Federal Ministry of Industry, Trade and Investment gave the indication on Sunday that the current 70 per cent tariff on imported cars could get a downward review as a way to force down the prices of vehicles..

Expecting them to emerge from their holes to complain it is a ploy to strangulate their budding automotive endeavours..

That PMB is attempting to get back at them for not supporting him..





The source though..

Nice move.! GEJ deceived us with his Yeye auto policy. After these years we still can't find brand new cars to buy at cheap rates, yet our beloved tokumbo that have been serving us diligently for years now is now beyond our reach.