The Federal Government has released the details of
new duties and levies payable on imported new and
used vehicles as well as imported new tyres from
next year, raising the tariff from 20 per cent to 70
per cent.
Dealers of imported vehicles estimated that the new
rate would translate into an increase of 60 per cent
on imported cars.
The Federal Executive Council had last month
approved a new national automotive policy aimed at
encouraging local production and assembling of new
vehicles with an imposition of a high import tariff on
fully built vehicles. But the new rate was not given
then.
A two-page document dated November 14, 2013
and signed by the Minister of Finance, Dr. Ngozi
Okonjo-Iweala, gave the new import tariff on cars
as 70 per cent (of the cost of each vehicle).
It stated that a fully built car would attract a duty of
35 per cent and a levy of another 35 per cent of the
cost of the vehicle.
Hitherto, importers/dealers parted with 20 per cent
and two per cent as duty and levy, respectively on
new cars. Ten per cent flat rate was also imposed
on commercial vehicles.
Although the new tariff on cars shows an increase
of 48 per cent over the old rate, dealers have
estimated that the showroom price of an imported
car will rise by 60 per cent when other variables
(costs) are added.
In other words, prices of imported cars currently
being sold between N3m and N5m will shoot up to
N4.8m and N8m; while tokunbo vehicles selling for
N800,000 will rise to N1.28m.
Those who spoke with our correspondent on the
issue on Sunday also warned that there might not
be enough vehicles to meet the demand of the
country next year.
A sales manager with one of the major dealers said,
“Many of us are skeptical about ordering for new
vehicles because we don’t know if people would be
ready to pay the about 60 per cent increase on the
cars when the import duty and levy are added to the
original cost of purchase.
“Even the supplies by local plants will obviously be
grossly inadequate to meet the demand.”
The document, with reference number BD/FP/
DO/09/189, also stated that fully built commercial
vehicles would attract 35 per cent duty but no levy
imposed.
Specifically, it stated, “Local assembly plants shall
import completely knocked down (vehicles) at zero
per cent duty; and semi-knocked down (vehicles) at
five per cent duty.
“Local assembly plants shall import fully built unit
cars at 35 per cent duty and 20 per cent for
commercial vehicles without levy, respectively in
numbers equal to twice their CKD/SKD kits.
Imported tyres would also cost more as from next
year as 20 per cent duty and five per cent value
added tax have been placed on tyres of cars, buses
and lorries.
“Local tyre manufacturing plants are to import tyres
at five per cent duty in numbers equal to twice their
production for two years from the date of
commencement of production,” it stated.
Similar high tariff will also be charged on used
vehicles, according to the document. It added that
the Nigeria Customs Service “shall use the value of
a new vehicle depreciated by 10 per cent per
annum, implying 10 years period of cars and by
seven per cent per annum implying 15 year period
for commercial vehicles. In either case, depreciation
should never be below 30 per cent of the value of
the new vehicle equivalent.”
http://www.punchng.com/news/prices-of-imported-cars-to-rise-by-60/

This is very unfortunate to say the least. They dont have to increase the tariff to achieve the aim of attracting the foreign manufacturers to open plants in the country


www.viperautos.com

www.facebook.com/ViperAutos

pls when does this nonsense take effect. I'm expecting my car at lagos port in a few days

pls when does this nonsense take effect. I'm expecting my car at lagos port in a few days oo

In my country,things keep getting tougher.