ABUJA – Federal Government is presently considering the option of raising the tariffs on imported used cards to enable Nigerians afford new vehicles.
This is as the Vice President Yemi Osinbajo has urged the National Automotive Design and Development Council to make out a comprehensive vehicle credit purchase scheme.
The directive came against the backdrop of the Council’s plan to develop the automotive industry by reintroducing vehicle assembly operations, under the National Automotive Industry Development Plan (NAIDP).
Speaking in Abuja during a briefing by the council, Osinanjo noted that “the Council bill is taking time but it should be made to work for those who cannot afford new vehicles.”
The Vice President however shared concerned about the strategy for raising funds and pressure which the importation of used vehicles exert on the foreign exchanged, also expressed concern about the effect the high import duties may have on Nigerians who cannot afford new cars and on transportation in general.
Also expressing concern about the spate of smuggling of used vehicles which has impacted negatively on the economy, he also urged the Council to work with other agencies such as the Nigeria Customs as well as a soft-ware that can check the menace.
He told the Council to put up a strong case for the credit purchase policy, the timing of the policy and the cushion effect it may have on those who cannot afford new vehicles while promising to take up the case with the Central Bank of Nigeria.
Speaking earlier, the Director General of the National Automotive Design and Development Council, Engr. Aminu Jalal, who led the delegation said the objective of the policy is to “ensure the revival, development and growth of the Nigerian Automotive industry, using local human and material resources”.
Jalal who solicited for gradual increase of tariff starting with those aged up to two years as 3 – 6 month old cars imported as used vehicles stated that the goal of the National Automative Development Policy was to increase customs revenue without increase in prices of assembled vehicles and make investment attractive and convenient.
He also expressed optimism that Nigeria will win the war against smuggling, saying that a programme would be put in place to impose protective tariff and levy as well as an electronic online solution to capture the 17-digit vehicle identification number (VIN) obtained by Nigeria Customs Service upon payment of Duties.


http://www.vanguardngr.com/2015/11/fg-to-raise-import-duties-on-used-vehicles/

The increase can be of two folds
1. Increase the duty on imported used cars
2. Increase the duty on imported new cars

If we increase the duty on the first one and leave the second, we will still have a situation where the imported cars will be cheaper than those made here which will not encourage the local businesses as demand is mostly decided on price and brand.
If we increase the duty on the second and leave the first, we will have more people buying second hand cars and leaving the new ones imported or not.

I believe that the import duty should be increased on new and used cars. That is the only way the automobile policy of the past administration can be sustained and we can encourage local production hence, create more jobs and reduce the strain on the currency by importing cars.

Even with this, new cars are expensive and this is where the financial institutions should come in with giving people finance option for cars and helping with payment plans etc.

It is not enough to grant tax holidays and free land by the last Goodluck administration which is laudable, the next step should be policies to protect these industries by helping them grow. One of such is to make sure government only buys made in Nigeria cars. That itself will ensure sales by these firms and some level of job security it is even a sort of advertisement.

Lets also make sure we plug smuggling as when we increase import duties, these funds go to the government and smugglers are actually economic criminals.

Mynd44:
The increase can be of two folds
1. Increase the duty on imported used cars
2. Increase the duty on imported new cars

If we increase the duty on the first one and leave the second, we will still have a situation where the imported cars will be cheaper than those made here which will not encourage the local businesses as demand is mostly decided on price and brand.
If we increase the duty on the second and leave the first, we will have more people buying second hand cars and leaving the new ones imported or not.

I believe that the import duty should be increased on new and used as. That is the only way the automobile policy of the past administration can be sustained and we can encourage local production hence, create more jobs and reduce the strain on the currency by importing cars.

Even with this, new cars are expensive and this is where the financial institutions should come in with giving people finance option for cars and helping with payment plans etc.

It is not enough to grant tax holidays and free land by the last Goodluck administration which is laudable, the next step should be policies to protect these industries by helping the grow. One of such is to make sure government only buys made in Nigeria cars. That itself will ensure sales by these firms and some level of job security it is even a sort of advertisement.

Lets also make sure we plug smuggling as when we increase import duties, these funds go to the government and smugglers are actually economic criminals.

Am actually liking this post!

kaboninc:

Am actually liking this post!

At least he is not chasing me with a cutlass on this thread

Mynd44:

At least he is not chasing me with a cutlass on this thread

My brother......


I chase you when I read funny comments from you. But this, very objective and I MUST commend you for it.

Even if 1995 C-Class costs 1.5 million Naira, people will still prefer it to a brand new car of around that price because the Hyundai or Kia you will get with that amount of money is not likely to withstand a 4000 KM journey. Our policy makers do not reason carefully before coming up with their policies. Can a brand new Piccanto last longer than a tokunbo EOD? I doubt it. The first thing is to fix our steel rolling mills. Fix our tyre manufacturing plants. Encourage my Nnewi brothers to start producing brake pads, oil filters, spark plugs etc. As long as we still import all those things, which yeye job are they creating? Cars are not manually assembled (maybe in Nigeria, they are) so the jobs that can be created is indirect employment for workers in companies that supply the plants.

Hmmmm