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Imported cars: Reps differ on higher tariff policy
October 17, 2013 by John Ameh 17 Comments



Hon. Femi Gbajabiamila

Hon. Femi Gbajabiamila

Two members of the House of Representatives on Wednesday held opposing views on the Federal Government’s decision to raise tariff payable on cars imported into the country.

The new tariff regime, fallout of the government’s Automotive Industrial Policy Development Plan, implies that Nigerians will pay heavier tariff on cars they import into the country than they are already doing.

The aim of the policy is to discourage imports, encourage production by local car assembly plants and drive the supply chain in the country.

The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, had indicated two weeks ago that the new tariff regime would kick off on October 4.

However, lawmakers failed to agree on the relevance of the policy on Wednesday in Abuja.

For example, the Minority Leader of the House of Representatives, Mr. Femi Gbajabiamila, observed that higher tariff on cars would be an added burden on “impoverished Nigerians.”

He also argued that there was nowhere in the world where the government would begin to tax its citizens ahead of a policy that had yet to take off.

The lawmaker said he expected that the assembly plants would have taken off and started supplying cars to the market before the government would begin to introduce measures to discourage imports.

Besides, Gbajabiamila opposed the idea of the government raising tariff by fiat without recourse to the National Assembly to put in place the necessary legal framework.

[size=18pt]Reps C’ttee backs high tariff on imported vehicles[/size]


The House of Representatives Committee on Industry, on Thursday, declared support for the Federal Government’s decision to increase tariff on imported vehicles.

The Federal Executive Council recently approved new measures aimed at transforming the automotive sector and ultimately put Nigeria among the league of auto producing countries.

The Chairman, House Committee on Industry, Honourable Mohammed Onawo made the declaration in Abuja when his committee visited the Ministry of Industry, Trade and Investment on oversight functions.

He said that the introduction of tariff measures to protect indigenous automotive manufacturers would increase the capacity utilisation of the sector.

“The Committee believes that anybody who is going to import complete car should pay higher tariff than somebody who is going to manufacture here,” he said.

He said that was the only way the local industry could be protected.

“The Ministry of Industry, Trade and Investment is one of the most important ministries in terms of helping to diversify our economy.
“We are, therefore, calling on the necessary organs of the government to give special attention to the funding of automotive industry so that our economy can be better,” Onawo said.

He also said that the implementation of the new measures would attract new investments into the sector, protect local automotive manufacturers and create employment.

The Minister of Industry, Trade and Investment, Mr Olusegun Aganga, said at the meeting that the ministry would partner all stakeholders in the implementation of the Industrial Revolution Plan.

He said that the new automobile policy would fast-track industrialisation, create jobs and generate wealth.

“The new measures to transform the automotive sector is part of our Industrial Revolution Plan, which is holistic and based on areas where we have comparative and competitive advantage as a country,” Aganga said.


http://tribune.com.ng/news2013/index.php/en/news/item/24199-reps-c%E2%80%99ttee-backs-high-tariff-on-imported-vehicles.html