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FG To Slash Levy On Imported Cars To 5% From 35% - Car Talk - Nairaland

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FG To Slash Levy On Imported Cars To 5% From 35% by ogododo: 9:36am On Nov 22
The federal government has concluded plans to slash the levy to be paid on imported cars from 35 percent to five percent.

This is contained in the draft bill of the 2020 finance bill to be presented to the national assembly.

The bill becomes law after it is passed by the legislature and assented by President Muhammadu Buhari.

Details of the bill shared by the presidency also show that the import duty of tractors and motor vehicles for the transportation of goods has been slashed from 35 percent to 10 percent.

The bill also grants tax relief to companies that donated to the COVID-19 relief fund under the private sector-led Coalition against COVID-19 (CACOVID).

To improve ease of doing business, the bill also proposes that software acquisition now qualifies as capital expenditure.

Zainab Ahmed, the minister of finance, budget, and national planning, had previously explained that the reduction in import duties and levies is targeted at reducing the cost of transportation.

“The reason for us is to reduce the cost of transportation which is a major driver of inflation especially food production,” she told state house correspondents at the end of the federal executive council (FEC) on Wednesday, November 18.

In 2019, Hameed Ali, the comptroller-general of the Nigeria Customs Service had urged the federal government to reduce the levy paid on imported cars to 10 percent.

At the time, Ali argued that the levy, which is paid in addition to the 35 percent import duty, has discouraged importers; causing them to divert their importation to neighbouring countries and heightened smuggling.

https://www.thecable.ng/no-more-35-fg-to-slash-levy-on-imported-cars-to-5/amp

33 Likes 4 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Officialgarri: 9:42am On Nov 22
This is like telling Innosson to go to hell.

Innosson products are less affordable. But can we blame him ? I think NO.
The cost of producing raw materials in Nigeria is not cheap not only because of limited technological know-how but because we are solving problems upwards to the ground instead of the other way round.

What do I mean? If there are enough automotive spare parts production industries in Nigeria despite our abundance of iron family (lead and zinc) , then the problem of monopoly and inflation will be solved on it's own.

The government on her part will not continue to wait for Innosson to bring down their prices

Modified: why does many think I'm taking sides with this comment?

110 Likes 8 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by ethicallyright: 9:44am On Nov 22
The over hyped car assembler, loan defaulter and tax fraud disguising as an automobile manufacturer needs to begin an overhaul in his moving coffins packaging company.


He may begin by employing a brain filled cone head individual and intelligent innovator like myself to champion electric cars production which is clearly the future.
He should also stop dashing Big Brother Naija's women of easy virtue vehicles they keep as furniture at home and instead drive the Mercedes their "fans " gift them and invest more in Corporate Social Responsibilities like sponsoring brilliant minds to Universities in Europe , China and North America to aid technology transfer that will help his firm grow.



Jokes aside, local automobile manufacturers should target individuals with low income who would most likely purchase vehicles for full time or part time transportation business to increase their income. In a country where people laugh at you for using a brand new current Infinix instead of a second hand iPhone 6 in 2020, it is funny to think that middle income or high income earners would buy a locally produced car for the price they can get a decent Toyota, Mercedes or Lexus.

Produce more fine tricycles , mini buses and partner with hire purchase companies to sell and distribute them to your target consumers who do not drive vehicles for clout. There is a huge potential here. Lagos State and every other State yet to ban commercial motorcycles completely have waiting consumers for such vehicles.

255 Likes 23 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Rugaria: 9:45am On Nov 22
That will bring more revenue to Nigerias government because it will kill the car importation business through cotonou. But at the same time, it may mark the end of our growing automobile industry. The likes of innoson should worry. Government has chosen more money over greater technology transfers here. Obviously, the government is really cash strapped. Benin republic rakes in billions from Nigerians through the many cars going towards Nigeria that are cleared at her ports every year. It may also improve the quality and models of cars driven in Nigeria. You will be surprised that in relative terms, folks in cotonou drive more recent models of cars than Nigerians. Nigerians have to drive older models because importers pay lesser duties on those, thereby standing a better chance of making more profits... Problem is that the accrued revenue will ultimately disappear into private hands or end up being used to biuld up Niger republic..

139 Likes 5 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Yenefer(f): 9:45am On Nov 22
Sai Baba. Buhari havr to rebuild Nigeria all over again after years of PDP destruction.
Innoson motors? Who cares. We don't

38 Likes 11 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Rugaria: 9:48am On Nov 22
Yenefer:
Sai Baba. Buhari havr to rebuild Nigeria all over again after years of PDP destruction.
Innoson motors? Who cares. We don't
You are noisy..

302 Likes 16 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by SavageMaster: 9:49am On Nov 22
Rugaria:
That will bring more revenue to Nigerias government because it will kill the car importation business through cotonou. But at the same time, it may mark the end of our growing automobile industry. Thelikes of innoson should worry. Government has chosen more money over greater technology transfers here. Obviously, the government is really cash strapped. Benin republic rakes in billions from Nigerians through the many cars going towards Nigeria that are cleared at her ports every year. It may also improve the quality and models of cars driven in Nigeria. You will be surprised that in relative terms, folks in cotonou drive more recent models of cars than Nigeria. Nigerians have to drive older models because importers pay lesser duties on those, thereby standing a better chance of making more profits...

I heard Innoson is expanding to some African countries. I hope it works out for him so it will cushion the effect of this new government decision. Really troubling times.

28 Likes

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Aufbauh(m): 9:52am On Nov 22
Good way to go, but if you ask me I'll say it's long overdue.

Some of these stringent policies need to be free up cus it has multiplier effect on job creation and economic prosperity.
This has been the undoing of the present administration. Locking up route completely without creating a sustainable viable alternative.

34 Likes 3 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Simplyleo: 9:54am On Nov 22
As usual, we are always the target.

They want to kill IVM.

Increase import duties: The govt is insensitive to the plight of the masses.

Decrease import duties: the govt want to kill IVM.

Very funny pipu.

157 Likes 11 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by ivolt: 9:54am On Nov 22
Foolish and regressive policy. Everyone knows that fuel price is responsible for high transportation costs and not import duties. If fuel price is slashed today, the effect will be immediate unlike the duty reduction whose effects is dubious.

50 Likes 3 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Rugaria: 9:56am On Nov 22
SavageMaster:


I heard Innoson is expanding to some African countries. I hope it works out for him so it will cushion the effect of this new government decision. Really troubling times.
Best bet will be to quicken the process of manufacturing most of his raw materials locally. That will be capital intensive tho. Maybe alligning with the Chinese suppliers to set up shops locally.. In better managed environments, government would have helped to prop-up factories to help the supply chain. But this government is more interested in tax and spend. It's very easy to revert to policies like this to jack up revenue in the short term, but domesticating sundry technologies related to the car manufacturing business will ultimately grow the economy/Nigerias industrial base in the long run. There is also the problem of costant change of policies. Most of the big brands trying to open up assembly plants in Nigeria may not go on with the plan. Obviously, tokumbo cars will be cheaper..

21 Likes 1 Share

Re: FG To Slash Levy On Imported Cars To 5% From 35% by omenka(m): 9:56am On Nov 22
Na wa ooooo!!!

We complain everyday about how difficult it is doing business due to the burden of tax, duties and levies imposed by the government. Now they say they wanna slash levy and someone thinks IT IS TARGETED AT INNOSON.

Isn't this a normal economic incentive deployed by governments around the world to help boost commerce and stimulate the economy? Why do we always have to bring everything down to tribe and religion in this country?

How do you people's minds work exactly. Gosh! embarassed

146 Likes 13 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Acjohn: 9:57am On Nov 22
An evidence that Buhari government is confused. Policy instability is one of the things that drives away investors. It was supposed to be time for Igbo man like innoson but because hr is not a northerner, let the policy be changed to disfavor him. What happened to the automotive policy of Nigeria?

As I dey like this now, I don't know where we are headed economically, NNPC have changed from oil producer to oil importer. Resources in the north is for the people that in the south is for the government, Ipob are terrorist while Fulani herdsmen and BH are misunderstood people that government needs to negotiate with.

I won't be surprised if its a northerner that was given a contract and had to lobby for this to be lifted so that he can make good gains, after that government will reverse the policy again.

God help us from this circular motion.

34 Likes 2 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Simplyleo: 9:59am On Nov 22
Acjohn:
An evidence that Buhari government is confused. Policy instability is one of the things that drives away investors. It was supposed to be time for Igbo man like innoson but because hr is not a northerner, let the policy be changed to disfavor him. What happened to the automotive policy of Nigeria?

As I dey like this now, I don't know where we are headed economically, NNPC have changed from oil producer to oil importer. Resources in the north is for the people that in the south is for the government, Ipob are terrorist while Fulani herdsmen and BH are misunderstood people that government needs to negotiate with.

I won't be surprised if its a northerner that was given a contract and had to lobby for this to be lifted so that he can make good gains, after that government will reverse the policy again.

God help us from this circular motion.

As usual, we are always the target. 

They want to kill IVM.

Increase import duties: The govt is insensitive to the plight of the masses.

Decrease import duties: the govt want to kill IVM. 

Very funny pipu.

64 Likes 7 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by LibertyRep: 10:00am On Nov 22
How about rice?

3 Likes

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Rugaria: 10:08am On Nov 22
omenka:
Na wa ooooo!!!

We complain everyday about how difficult it is doing business due to the burden of tax, duties and levies imposed by the government. Now they say they wanna slash levy and someone thinks IT IS TARGETED AT INNOSON.

Isn't this a normal economic incentive deployed by governments around the world to help boost commerce and stimulate the economy? Why do we always have to bring everything down to tribe and religion in this country?

How do you people's minds work exactly. Gosh! embarassed
We are talking about how policy summersaults destroy budding local industries and the need for governments to think this through before proclaiming such policies. In this regard, innoson is the biggest local automobile industry! Nobody has talked about tribe yet until you injected your noxious conjectures into the thread. For heavens sake, This is the same government that has closed the countrys land borders because they want local farmers to sell rice!

40 Likes 3 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by OZOnNengiTheory: 10:09am On Nov 22
Simplyleo:
As usual, we are always the target.

They want to kill IVM.

Increase import duties: The govt is insensitive to the plight of the masses.

Decrease import duties: the govt want to kill IVM.

Very funny pipu.
This is why I hate them and I am terrible at hiding it.

Hypocrites! that's what they are. And by the grace of God, they will never come close to ruling this country.

22 Likes 3 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by tsdarkside(m): 10:15am On Nov 22
Acjohn:
An evidence that Buhari government is confused. Policy instability is one of the things that drives away investors. It was supposed to be time for Igbo man like innoson but because hr is not a northerner, let the policy be changed to disfavor him. What happened to the automotive policy of Nigeria?

As I dey like this now, I don't know where we are headed economically, NNPC have changed from oil producer to oil importer. Resources in the north is for the people that in the south is for the government, Ipob are terrorist while Fulani herdsmen and BH are misunderstood people that government needs to negotiate with.

I won't be surprised if its a northerner that was given a contract and had to lobby for this to be lifted so that he can make good gains, after that government will reverse the policy again.

God help us from this circular motion.

abegi park....!!

how many of you igbos actualy bought innoson cars....??

people dont want made in nigeria....their is nothing you can do about that fact....
you cant force me to buy cassava when i prefer basmati rice from india....

its my money....
what nigeria can still do is providin things that people prefer and not forcin them to what you have....

if nigerians prefer ferraris,then nigeria have to try to build something like ferraris or even better....

54 Likes 4 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by leokid866: 10:27am On Nov 22
Rugaria:
That will bring more revenue to Nigerias government because it will kill the car importation business through cotonou. But at the same time, it may mark the end of our growing automobile industry. The likes of innoson should worry. Government has chosen more money over greater technology transfers here. Obviously, the government is really cash strapped. Benin republic rakes in billions from Nigerians through the many cars going towards Nigeria that are cleared at her ports every year. It may also improve the quality and models of cars driven in Nigeria. You will be surprised that in relative terms, folks in cotonou drive more recent models of cars than Nigerians. Nigerians have to drive older models because importers pay lesser duties on those, thereby standing a better chance of making more profits... Problem is that the accrued revenue will ultimately disappear into private hands or end up being used to biuld up Niger republic..
but you do know the federal government is innoson biggest client.....he should be more worried if they decided to cancel or reduce his contracts.

19 Likes 3 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by tsdarkside(m): 10:30am On Nov 22
leokid866:

but you do know the federal government is innoson biggest client.....he should be more worried if they decided to cancel or reduce his contracts.

who cares....

you think just like that fg is trying something else....!!??

you no wan patronize made in nigeria....!!
Re: FG To Slash Levy On Imported Cars To 5% From 35% by Rugaria: 10:31am On Nov 22
tsdarkside:


abegi park....!!

how many of you igbos actualy bought innoson cars....??

people dont want made in nigeria....their is nothing you can do about that fact....
you cant force me to buy cassava when i prefer basmati rice from india....

its my money....
what nigeria can still do is providin things that people prefer and not forcin them to what you have....

if nigerians prefer ferraris,then nigeria have to try to build something like ferraris or even better....
I don't like made in Nigeria rice. Lots of stones. So why am I being forced to eat that with the closure of the borders? How can you support the ban on imported rice, a staple food eaten by Nigerians daily but become happy with the liberalisation of car imports? What changed!? Import bans on rice makes an essential, very costly, while reduced charges on car imports, makes a not so essential product cheaper... The problem with you guys is that you all start off by projecting your rabid tribalism on others. The only good thing in this policy is that Abuja politicians will have more money to spend. Otherwise any critical mind will know that this policy automatically makes Nigeria the dumping ground of used cars in the world. You are going to buys cars. Many cars. But it's still tokumbos used elsewhere. Capital flight with streets and highway littered with broken down caterpillars and lorries. Why bother explaining to you guys? You will always see it from your normal tortured lenses..

44 Likes 6 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Blankstare(m): 10:31am On Nov 22
Fake news
Re: FG To Slash Levy On Imported Cars To 5% From 35% by tsdarkside(m): 10:32am On Nov 22
Rugaria:

I don't like made in Nigeria rice. Lots of bones. So why am I being forced to eat that with the closure of the borders? How can you support the ban on imported rice, a staple food eaten by Nigerians daily but become happy with the liberalisation of car imports?like What changed!?I The problem with you guys is that you all start off by projecting your rabid tribalism on others. The only good thing in this policy is that Abuja politicians will have more money to spend. Otherwise any critical mind will know that this policy automatically makes Nigeria the dumping ground of used cars in the world. You are going to buys cars. Many cars. But it's still tokumbos used elsewhere. Capital flight with streets and highway littered with broken down caterpillars and lorries. Why bother explaining to you guys? You will always see it from your normal tortured lenses..

ehen....

soo,we should care about your igbo cars....??
what makes you think innoson is something special....??

not even you patronize your own....

i can import a car for just 2000dollars and sell it for double in nigeria....

13 Likes 1 Share

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Mgbadike80: 10:33am On Nov 22
Government paid online agents have already turned the thread to a tribal war, but we know from the days of #Endsars that they're mostly northerners pretending to be Igbos and Yorubas to cause disunity between the two biggest southern tribes. This policy applies to fairly used cars while Innoson produces brand new cars. This policy wouldn't negatively affect Innoson business because his cars are not targeted at fairly used cars buyers.

22 Likes

Re: FG To Slash Levy On Imported Cars To 5% From 35% by inoki247: 10:36am On Nov 22
Good enough of buying car from yankee for 500usd and paying 450k to 500k as duty to clear a shitty car dat u want to be managing..

9 Likes

Re: FG To Slash Levy On Imported Cars To 5% From 35% by seunmsg(m): 10:37am On Nov 22
Great decision. In fact, it is long overdue. We moved from importing 50,000 brand new cars to importing about 10,000 after the policy was implemented.

The auto industry has been in a mess since the policy was introduced. Sadly, the car makers that Jonathan and Aganga told us would start manufacturing in Nigeria have all gone audio. So, we ended up making importation of cars difficult and not producing anything locally to meet our needs. Kudos to Buhari for reversing the policy.

31 Likes 3 Shares

Re: FG To Slash Levy On Imported Cars To 5% From 35% by tsdarkside(m): 10:39am On Nov 22
inoki247:
Good enough of buying car from yankee for 500usd and paying 450k to 500k as duty to clear a shitty car dat u want to be managing..

nigeria has good car mechanics....
profit is still their....

look,am sad to say this....
but not everybody can afford a innoson....

2 Likes

Re: FG To Slash Levy On Imported Cars To 5% From 35% by inoki247: 10:40am On Nov 22
tsdarkside:


nigeria has good car mechanics....
profit is still their....

look,am sad to say this....
but not everybody can afford a innoson....

is just like cause America Made Ford or Chevy dey should frustrate other brand with alot of duty just to patronize d brand is Mata of choice....
Re: FG To Slash Levy On Imported Cars To 5% From 35% by tsdarkside(m): 10:42am On Nov 22
inoki247:


is just like cause America Made Ford pr Chevy dey should frustrate other brand with alot of duty just to patronize d brand is Mata of choice

its a Mata of choice....

2 Likes

Re: FG To Slash Levy On Imported Cars To 5% From 35% by inoki247: 10:44am On Nov 22
tsdarkside:


its a Mata of choice....

Look at the foolish local rice that them tell us make we dey patronize was so cheap before buh ones the Government shift our attention towards it the thing come cost pass rice wey u ship from abroad sef...

6 Likes

Re: FG To Slash Levy On Imported Cars To 5% From 35% by ZKOSOSO(m): 10:45am On Nov 22
Yenefer:
Sai Baba. Buhari havr to rebuild Nigeria all over again after years of PDP destruction.
Innoson motors? Who cares. We don't
If u are indeed human and female.....u deserve............!!
Re: FG To Slash Levy On Imported Cars To 5% From 35% by SavageMaster: 10:48am On Nov 22
ethicallyright:
The over hyped car assembler, loan defaulter and tax fraud disguising as an automobile manufacturer needs to begin an overhaul in his moving coffins packaging company.


He may begin by employing a brain filled cone head individual and intelligent innovator like myself to champion electric cars production which is clearly the future.
He should also stop dashing Big Brother Naija's women of easy virtue vehicles they keep as furniture at home and instead drive the Mercedes their "fans " gift them and invest more in Corporate Social Responsibilities like sponsoring brilliant minds to Universities in Europe , China and North America to aid technology transfer that will help his firm grow.

Such hate.

I don't think Innoson got things totally wrong so far.

I agree he needs some improvement in his brand.

8 Likes

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