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Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles - Car Talk (5) - Nairaland

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35% Levy On Tokunbo Vehicles Begins July 1 / Reps Endorse Tariff Increase On Imported Cars / Tariff On Imported Tokunbo Cars Raised (2) (3) (4)

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Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by t2luv1: 3:39am On Sep 19, 2014
sonnie10: On the customs website, there is provision for importation of semi Completely Knocked Down (CKD) vehicles. The total duty/levy on semi-CKD is about 20%. I would assume that any smart importer would bring the vehicle in as semi- CKD. All it would take is to employ people who would put the parts together; considering that labor is cheap in Nigeria, this definitely would be more cost effective.

In a layman term, importing semi-CKD means you ship only body, and the mechanical/electrical components are packed and shipped separately.



With all the electronics in some of these cars God forbid your local repair man accidentally plug in the wrong harness wire and your check engine light comes on, but the repair man assure you all is well with the car. You have an accident and the air bag module fail to deploy hope you remember how it all started with someone just trying to pay 20% duty on "Semi-CKD". God help us in that country. Like I always say we Nigerians deserve the government we have. FYI In US when a car comes into the country the destination charge is $495 that is it. You can check by looking at car Manufactured Suggested Retail Price (MSRP). The same car after having been used for 6 yrs in US now arrive in Nigeria, and the clearing cost is close to $4000.00.
Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by t2luv1: 3:42am On Sep 19, 2014
sonnie10:

In as much as we are all aware that anything goes in Nija, I believe that any thing that is worth doing is worth doing right. You do not have to own a plant as big as Innoson to do this. Any certified auto mechanic, given the right equipment and tools [/b]would be able to mount an engine/ transmission and suspension. Same goes for the electrical aspect. What else is a car made up of? This is not the job for engineers.


You just text the magic words [b]"Right Equipment and Tools".
Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by femmy2010(m): 4:28am On Sep 19, 2014
sonnie10:

In as much as we are all aware that anything goes in Nija, I believe that any thing that is worth doing is worth doing right. You do not have to own a plant as big as Innoson to do this. Any certified auto mechanic, given the right equipment and tools would be able to mount an engine/ transmission and suspension. Same goes for the electrical aspect. What else is a car made up of? This is not the job for engineers.

Simply because u want to mount an engine and transmission,u completely knock down a perfect sedan and have it re-built imperfectly in Nigeria?
My guess is a "Thank you" would take care of the cost of re-building the knocked down car?
My bruva think am wella.
Banning importation of new vehicles makes much sense but banning/placing very high duty/levy on the older used ones which is what the populace can easily afford is un-warranted.
Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by femmy2010(m): 4:32am On Sep 19, 2014
CityNG: I think some of those accursed Nissan Micra are imported with their roofs cut off to bypass some custom regulations.

They then weld the roofs back on.

That is why they are only used as Taxis in Ibadan,Ede,Oshogbo etc.
Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by Nobody: 4:58am On Sep 19, 2014
femmy2010:

That is why they are only used as Taxis in Ibadan,Ede,Oshogbo etc.

If I was the Guvnor of Oyo or Minister of Transportation my very first task is to crush every single one of those death traps.

But there are some private owners too in Ibadan.
Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by Nobody: 5:04am On Sep 19, 2014
t2luv1:

With all the electronics in some of these cars God forbid your local repair man accidentally plug in the wrong harness wire and your check engine light comes on, but the repair man assure you all is well with the car. You have an accident and the air bag module fail to deploy hope you remember how it all started with someone just trying to pay 20% duty on "Semi-CKD". God help us in that country. Like I always say we Nigerians deserve the government we have. FYI In US when a car comes into the country the destination charge is $495 that is it. You can check by looking at car Manufactured Suggested Retail Price (MSRP). The same car after having been used for 6 yrs in US now arrive in Nigeria, and the clearing cost is close to $4000.00.

That charge you are referring to is not the clearing fee but a delivery and handling fee and it varies.

New car dealers in Nigeria should never be charging buyers any clearing fees. I'm talking from a franchised dealer not the under the bridge types. You are not going to walk into Porsche dealership and they tell you that you need to pay a clearing fee.

Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by poik(m): 9:38am On Sep 19, 2014
Sometimes I wonder about our policy makers.
Why must every policy cause hardship to the proletariat?
The local industries have not even started running, they rushed to hike the duty on imported vehicles.
Its been nearly a year since I heard about the 30bn govt wanted to inject into local automotive industries. Do they intend to get the money from these levies, or what?
These people should look at international best practices abeg.
Not that we even have the roads to drive the cars on, by the way.
No matter how they try to colour it, the demand on tokunbo cars is high, and that's the target.
In favour of their pockets.
Well, even if they shoot the levy to 1000 per cent, my God will get me a good car to drive.
Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by poik(m): 9:40am On Sep 19, 2014
Sometimes I wonder about our policy makers.
Why must every policy cause hardship to the proletariat?
The local industries have not even started running, they rushed to hike the duty on imported vehicles.
Its been nearly a year since I heard about the 30bn govt wanted to inject into local automotive industries. Do they intend to get the money from these levies, or what?
These people should look at international best practices abeg.
Not that we even have the roads to drive the cars on, by the way.
No matter how they try to colour it, the demand on tokunbo cars is high, and that's the target.
In favour of their pockets.
Well, even if they shoot the levy to 1000 per cent, my God will get me a good car to drive, and change it when its due.
Anyone who trusts the budget of man, is on his or her own. Imagine!!!
Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by justmag(m): 4:26pm On Sep 19, 2014
zicoraads: Pity yourself, not Nigerians. Some of you have lost all sanity in the process of criticism, not minding how dumb you sometimes sound when trying too hard to be of relevance.

Do you even have any idea how many jobs this will create? Do you? Just check how many jobs the auto industry in South Africa creates. Car manufacturing plants, asSembly plants, spare parts and so on.

It is better to keep quiet and be thought a fool, than to speak and remove all doubtsm

E X A C T L Y !!!
Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by t2luv1: 6:53pm On Sep 19, 2014
priscaoge:
Think about the Transformation,job opportunities and employment! It's not always wise to criticise good things even when d truth is glaring. It's a very wise decision to take which will help to curb unemployment in the country. And about d Duration of d cars,my dear its certain! Cars will be cheap that even d poor can afford it,Nigeria will export cars to other countries n it will help to build our Economy! Let's always be positive,Nigeria is our country,let's make it a better place.


What ever you are smoking, kindly give me some of it. Instead of 20 point transformation agendas why cant this government just get fixated on one. Get the country L I G H T.. Assembling a car in country that can't currently produce a simple safety pin. Lawd Have Mercy. Can someone just tell which component in the assembling of a car can be locally made apart form the most obvious one which is labor. Starting with least MRO item which are the fasten clips we cant even make that. Its all pipe dream when it comes to assembling car in Nigeria. Until the light situation, basic infrastructure are in place nothing is going to happen regarding car assembly in Nigeria. This policy is nothing but a revenue enhancement for the government.
Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by inze(m): 9:36pm On Sep 19, 2014
keyman0007:

Please spare us the lies, what stupid job, the truth is this policy will hit the middle class earners hard, the implication is prices of both brand new cars and tokunbo cars increase drastically. now buying a new corolla which was 3.5m some 3 yrs back is now 6m, all cos of this stupid tax. Even the government (ministers, senator and executives)introducing the policy i dont see them driving the so called made in Naija car.
We have policy implementors who dont think always assuming, they undermine certain factors assuming all Nigerians can cope with the drags. The cost of producing anything in the country is high, due to the absence of the required amenties like power, materials used for production. compared to the countries where these car are being made. Also country stability also very cruticial in attracting investors especially when it comes to investing (sighting manufacturing plant), with all these recent happenenings like bokoharmA, kidnapping , bomb explosions here and there, political instability, ebola etc. no sane foreign business man or company will be willing to risk investing alot in such a nation. Findout if you have friends that work for mulitnational, they will tell u Nigeria is a high risk zone. Travleling into naiaja requires some form clearance. dont get me worng they have asset here but on a small scale. Even the so called telecoms sector are nw outsourcing most of their staff and services. Am certain 99 percent of all the parts used a manufacture the so called made in Naija cars, will be brought from oversees. what will be done here will be assembling. they may employ some few labourers and engineers (at best 3000) nation wide. Compare that to about 30 million nigerians who will be impacted.

I feel the approach is very wrong, people shd analyze policies properly before blindly supporting them. What FGN cld have done is to give the so call naija company(local vehicle manufacturers) some form of waivers and duty free importation or a reduced company income tax. Let them come in, produce cars and employ. Then the government can gradually begin to ease of importation, introduce tax for imported cars. the policy is another means of generating revenue for the Government which to me is unfair on the average working class. why must the citizens always bear the burden, cant they think?

I have nt gainned any signifcant benefit from the privitisation of nepa, or partial removal of subsidy although i knw it remove alot of burden from the Government.
I Personally i see it as a wrong move at the wrong time. but that just me. I know i sound negative but I only speak from experience and the many failed policies

Someone help me give this man a beer

I couldn't have said it any better

We just don't have the enabling environment yet to dabble into such huge "dream" just like many others we hear everyday

1 Like

Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by shoppyanno(m): 2:57am On Sep 20, 2014
I'm not an economist. I'm talking from the common sense angle & these are my thoughts:

Growing our Local Industries is good because it will have multiplying effect; job creation etc.but increasing tarriffs without putting NECESSARY INFASTRUCTURE on ground will never grow the auto industry in Nigeria.

How CONSTANT is our ELECTRICITY SUPPLY especially to industrial estates?
What made MICHELINE & DUNLOP (trye manufacturers) leave NIGERIA?
One of the MAJOR EXCUSES, services providers MTN etc give for high tariff in Nigeria is, having to run their base station on desiel 24/7.
Without INFASTRUCTURES & CONDUSIVE BUSINESS ATMOSPHERE, I doubt if GIANT Auto Manufacturers like TOYOTA, MERCEDES BENZ, BMW & HONDA will come here.

QUALITY & STANDARD is another area the FG needs to FOCUS on with the LOCAL AUTO INDUSTRY.
Have our Made In Nigeria Cars been put to rigourous test?
I will prefer to buy a Tokunbo C- Class Mercedes Benz of 2002 for 1.5m than a Made in Nigeria Hyundai of 1.5m cos of DURABILITY.
Most Nigerian folks will always prefer importing their NEEDS as far as they can afford it cos they are sure of the quality of what they are buying.
For example, Electronics/Frigde/Freezer that are brought into Nigeria are Substandard. The same China that manufacutures products for Nigeria does same for UK & US but you can't compare that of the US with Nigeria cos of STANDARD.

How many UNITS of Peugeot 301, Hyundai & Innoson cars are on ground ready for sale to meet the demand of prospective car buyer? Similarly, are these motor parts available in the market (across the country) already?
That's assuming the prices are reasonable for the average Nigerian.

Which OFFICIAL & Convoy Automobile is the President/Vice President/Senate President/Governors using?
I expect them to use Innoson, 301 peuogeot, etc (Made in Nigeria Cars) at least to lead by EXAMPLE & show sincererity at boosting our LOCAL AUTO INDUSTRY


PULLING THE CART BEFORE THE HORSE, is what the FG has done so far. I believe this Increase in Tarrif is just to benefit a Cabal & not in the interest of the Masses.
Since Nigeria stopped importing Cement with the entrance of Dangote into the scene, as CEMENT PRICE dropped?
Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by ifycamilla(m): 8:49am On Sep 20, 2014
I just can't stop crying for our dear country Nigeria due to bad leadership, with wrong decisions..They want to ban kpomo meat ,they also want to ban Tokunbo cars the pride of the poors..Instead of making life easier for the citizens, rather they're making life even harder for the citizens..How many Nigerians can even afford the tokunbo cars come to talk of the new ones, 'Ridiculous'..Also , they talked about job creations, haha, that's funny, how many jobs do anyone thinks car assembly can provide? Believe me not much , I work in a car assembly factory in Europe . Most jobs in the car assembly factory are largely done by the machines not manually, so where would the job creation come from?. I have three buses in Nigeria for sale and they're going for 600k each. In few weeks time those buses will go for 1.6m and the brand new ones will go for 4m. So how many Nigerians can afford it?. In countries like south Africa and England where people drives brand new cars, those cars were financed by the banks, not on cash bases, which banks in Nigeria gives such loans for cars?
Re: Nigeria Begins Implementation Of 35% Levy On Imported New Vehicles by ifycamilla(m): 9:41am On Sep 20, 2014
Godbless you my Brother, you are perfectly correct, I work in a car assembly factory in Europe and all these lies about job creations are pure bulls.

Please spare us the lies, what stupid job, the truth is this policy will hit the middle class earners hard, the implication is prices of both brand new cars and tokunbo cars increase drastically. now buying a new corolla which was 3.5m some 3 yrs back is now 6m, all cos of this stupid tax. Even the government (ministers, senator and executives)introducing the policy i dont see them driving the so called made in Naija car.
We have policy implementors who dont think always assuming, they undermine certain factors assuming all Nigerians can cope with the drags. The cost of producing anything in the country is high, due to the absence of the required amenties like power, materials used for production. compared to the countries where these car are being made. Also country stability also very cruticial in attracting investors especially when it comes to investing (sighting manufacturing plant), with all these recent happenenings like bokoharmA, kidnapping , bomb explosions here and there, political instability, ebola etc. no sane foreign business man or company will be willing to risk investing alot in such a nation. Findout if you have friends that work for mulitnational, they will tell u Nigeria is a high risk zone. Travleling into naiaja requires some form clearance. dont get me worng they have asset here but on a small scale. Even the so called telecoms sector are nw outsourcing most of their staff and services. Am certain 99 percent of all the parts used a manufacture the so called made in Naija cars, will be brought from oversees. what will be done here will be assembling. they may employ some few labourers and engineers (at best 3000) nation wide. Compare that to about 30 million nigerians who will be impacted.

I feel the approach is very wrong, people shd analyze policies properly before blindly supporting them. What FGN cld have done is to give the so call naija company(local vehicle manufacturers) some form of waivers and duty free importation or a reduced company income tax. Let them come in, produce cars and employ. Then the government can gradually begin to ease of importation, introduce tax for imported cars. the policy is another means of generating revenue for the Government which to me is unfair on the average working class. why must the citizens always bear the burden, cant they think?

I have nt gainned any signifcant benefit from the privitisation of nepa, or partial removal of subsidy although i knw it remove alot of burden from the Government.
I Personally i see it as a wrong move at the wrong time. but that just me. I know i sound negative but I only speak from experience and the many failed policies [/quote]

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