President Goodluck Jonathan in Lagos on Friday said
that the Federal Government would soon commence a
10-year tax holiday for local tyre manufacturers.

Jonathan made the declaration at the opening
ceremony of the 2013 Lagos International Trade Fair.
Represented by Mr Olusegun Aganga, the Minister of
Trade and investment, Jonathan said the tax holiday
was part of the commitment of the government to its
new automobile policy.

The president said that the value chain on key
automobile products like metals, iron ore, plastic, and
tyres would also be improved.

“In terms of product development, you need tyres.
Michelin and Dunlop died many years ago because of
poor government policy. We are bringing them back.

“The policy for tyre, part of the problem was that some
of the tyres were brought in at 10 per cent, while
some are 20 per cent and 40 per cent.

“Anybody that goes into tyre production like Michelin and
others will start bringing in tyres at 5 per cent based
on the level of commitment to produce tyres locally.

“They will not pay tax for the next five to 10 years.

“Also to promote the automobile sector, we are
making investments in the petrochemical sector.

“Last month, Mr Aliko Dangote announced an
investment of nine billion dollars on a petro-chemical
plant.

“The plant will offer an immediate employment to
8,000 engineers, and then a subsequent 85,000
workers.

“It is also needful to diversify the economy, despite
our plans for the petroleum sector,” he said.

The president also said that adequate measures would
be provided to support the annual trade fair and make
it bigger to boost the real sector.

He said he had taken necessary legal steps to reverse
the full concession of the trade fair complex. (NAN)

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