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FG To Slash Levy On Imported Cars To 5% From 35% - Car Talk (10) - Nairaland

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Re: FG To Slash Levy On Imported Cars To 5% From 35% by Nobody: 7:02am On Nov 23, 2020
Kingv:


Useless forum that promotes hate. I hate this platform because of this
You can report the post immediately you saw it, the comment would have been hide.
Re: FG To Slash Levy On Imported Cars To 5% From 35% by Nobody: 7:06am On Nov 23, 2020
abdusalam7474:
I am in support of the policy because I believe it isn't directed at Innosun. infact, the present administration has been very supportive from the start.
Though it likely to affect the company, the main objective of FG is to ramp up revenue. However, the glitch here is that they haven't considered yet cushioning the effect of the policy reversal on local car manufacturing industries. This could be done by increase government patronage of local industries, tax holidays, or leaving the policy in place on a portion of the market where local companies compete heavily with importation.

http://Jimshub..com
Will this policy stop the government from doing all this?
Re: FG To Slash Levy On Imported Cars To 5% From 35% by Born2conquer: 7:28am On Nov 23, 2020
yusufu16:


Innoson should have started with keke or bicycle.
Like bajaj and co
Re: FG To Slash Levy On Imported Cars To 5% From 35% by nograv: 8:42am On Nov 23, 2020
BigBashiru:


Nigeria can't manufacture cars because Nigerians lack the tenacity and meticulousness requires to consistently manufacture high quality reliable vehicles - unless the manufacturing plant is manned by foreigners in addition to Nigerians

You are talking rubbish as IVM is proof of that.

Also until previous Northern administrations ran the economy into the ground.

Volkswagen, Mercedes and even Peugeot produced cars in Nigeria..

Learn some history before showing your ignorance...

Thankfully come 2023 Buhari and his cabal will gone.

Such foolish policies will be reversed..
Re: FG To Slash Levy On Imported Cars To 5% From 35% by Josywhyte: 8:43am On Nov 23, 2020
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.



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.




God bless you for this jare. You've said it but the mumu won't know all this. Locally made car that won't last for up to five years is bought for over N5m while i will still buy a 'belgium' lexus for that same amount that will last for over 10yrs

1 Like

Re: FG To Slash Levy On Imported Cars To 5% From 35% by olaboy1: 8:53am On Nov 23, 2020
Truth234:


How is it going to bring more revenue when forex demand would hit the roof and further drag down dwindling foreign reserves?

What about the assembling plants? Don't they pay taxes? You will lose that, new job creation and even plunge Naira value with persistent scarcity due to potential high demand for the US dollar.

Made in Nigeria, patronise locally made goods goes out if the window.

However, these were not the reason the whole policy was adjusted. It was to reduce cost of transportation of farm produce and ease food item prices, the whole policy is a joke.

Purchase is one off, what about maintenance and sustainability? What about rising fuel price and costs (spare parts and services)?.

This is another poor policy!.

I hope you are aware that many Nigerians ship in spare parts in cars, vans, buses and mini trucks. Lower levies will translate to lower cost of spare parts of essential economical stimulants vehicles and equipment. The farmers and logistic companies will not experience too much of downtime due to lack of funds for spare parts. The environmental impact of this policy also should be applauded, because Nigerians can now buy used cars around 5yrs old with very low emission/pollution as against the jallopies with no catalytic converters that they buy now.
Asthma, lung cancer and eye infections will reduce drastically thereby increasing the life expectancy of Nigerians.

2 Likes

Re: FG To Slash Levy On Imported Cars To 5% From 35% by TerrorSquad147: 9:09am On Nov 23, 2020
farouk2much:
this is the only reason i still dey like buhari.. Coz he hate those bastards called igbo... R.i.hell inno
you'll d.ie a pauper
Re: FG To Slash Levy On Imported Cars To 5% From 35% by 49cents(m): 9:18am On Nov 23, 2020
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.



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.


What is the difference between a car assembler and a car manufacturer?
Re: FG To Slash Levy On Imported Cars To 5% From 35% by Nobody: 9:22am On Nov 23, 2020
49cents:


What is the difference between a car assembler and a car manufacturer?
A car assembler cares little about innovation and thus does not produce the major parts of a vehicle . A car assembler buys parts like any other mechanic but works hard in packaging and branding what were previously purchased car parts to become a brand new vehicle.
Re: FG To Slash Levy On Imported Cars To 5% From 35% by pasol4real(m): 9:29am On Nov 23, 2020
BabaOwen:
You guys have start beating your chest again grin
All that Nigerians have to do is to call our bluff n deny us the presidency
Then you will know if we igbos are just chest beating or not
Re: FG To Slash Levy On Imported Cars To 5% From 35% by pasol4real(m): 9:32am On Nov 23, 2020
ethicallyright:

A car assembler cares little about innovation and thus does not produce the major parts of a vehicle . A car assembler buys parts like any other mechanic but works hard in packaging and branding what were previously purchased car parts to become a brand new vehicle.
Oga all car manufacturers buy parts like any other mechanic. Go do your research
Re: FG To Slash Levy On Imported Cars To 5% From 35% by Nobody: 9:53am On Nov 23, 2020
pasol4real:

All that Nigerians have to do is to call our bluff n deny us the presidency
Then you will know if we igbos are just chest beating or not
Keep beating your chest for there. Anything Una wan do will start and end in the south east.
Re: FG To Slash Levy On Imported Cars To 5% From 35% by Truth234(m): 10:20am On Nov 23, 2020
olaboy1:


I hope you are aware that many Nigerians ship in spare parts in cars, vans, buses and mini trucks. Lower levies will translate to lower cost of spare parts of essential economical stimulants vehicles and equipment. The farmers and logistic companies will not experience too much of downtime due to lack of funds for spare parts. The environmental impact of this policy also should be applauded, because Nigerians can now buy used cars around 5yrs old with very low emission/pollution as against the jallopies with no catalytic converters that they buy now.
Asthma, lung cancer and eye infections will reduce drastically thereby increasing the life expectancy of Nigerians.

You are looking at it in isolation and that is one of the issues with the Nigerian economy and policymakers. The economy will experience a downturn as a whole because the healthiness of the Nigerian economy is directly proportional to its foreign revenue which is presently at a record low due to weak oil prices and low output forced by OPEC plus accord.

Regardless of how they ship those spare parts, they used forex to buy them. It is going to affect the Central Bank's ability to intervene as usual at the nation's foreign exchange markets to support the Naira value. The affordable food item is an illusion as whatever advantages they created will be nullified by rising pumping prices and high cost of maintenance.

All you've mentioned contributed little to the real GDP, therefore, it wouldn't have the same effect like the dwindling foreign reserves that has always been our problem. You will not diversify the economy by encouraging foreign patronage and exporting our jobs. It is a counterproductive policy with poor thought.

How can a minister of finance attributed high inflation, especially the high cost of food items, to just logistics? What about herdsmen, poor weather, flooding? Are you saying with an effective transport system 14.23 percent inflation will disappear?
Re: FG To Slash Levy On Imported Cars To 5% From 35% by ihustlehard: 10:26am On Nov 23, 2020
Innoson is now their problem
Re: FG To Slash Levy On Imported Cars To 5% From 35% by abdusalam7474: 1:39pm On Nov 23, 2020
BabaOwen:
Will this policy stop the government from doing all this?

No sir.
Re: FG To Slash Levy On Imported Cars To 5% From 35% by Curvinus(m): 2:22pm On Nov 23, 2020
OneTemplate:


Abi. Igbos are simply irredeemable. I have always said no nation can make progress hosting enemies-within and saboteurs with persecution complex most Igbos are.

This is purely a logical economic decision any pragmatic Nigerian businessman, needing to transport goods across Nigeria, would understand, support and laud.

Haulage cost actually even does a huge disservice to food transport and, ultimately, food security across Nigeria.

This is because of the huge duties levied on the importation of commercial vehicles, lorries, vans and articulated heads that discourages many investing in this sector thereby leaving it uncompetitive and very costly for end users.

Trust Igbos to always make everything about themselves because of an overblown sense of their own participation and worth to the Nigerian economy.

You said aomething nice but couldnt resist having a dig at the Igbos just because of a few online comments. Perhaps it
would surprise you to know that many Igbos support this new policy and see it as a welcome development. Try not to be a bigoted idiot.
Re: FG To Slash Levy On Imported Cars To 5% From 35% by olaboy1: 2:54pm On Nov 23, 2020
Truth234:


You are looking at it in isolation and that is one of the issues with the Nigerian economy and policymakers. The economy will experience a downturn as a whole because the healthiness of the Nigerian economy is directly proportional to its foreign revenue which is presently at a record low due to weak oil prices and low output forced by OPEC plus accord.

Regardless of how they ship those spare parts, they used forex to buy them. It is going to affect the Central Bank's ability to intervene as usual at the nation's foreign exchange markets to support the Naira value. The affordable food item is an illusion as whatever advantages they created will be nullified by rising pumping prices and high cost of maintenance.

All you've mentioned contributed little to the real GDP, therefore, it wouldn't have the same effect like the dwindling foreign reserves that has always been our problem. You will not diversify the economy by encouraging foreign patronage and exporting our jobs. It is a counterproductive policy with poor thought.

How can a minister of finance attributed high inflation, especially the high cost of food items, to just logistics? What about herdsmen, poor weather, flooding? Are you saying with an effective transport system 14.23 percent inflation will disappear?


Cars and spare parts importers are not the cause of Nigeria’s dwindling economy and as you may know more than half of our forex is in the hands of hoarders and speculators despite the government injection of foreign exchange to create more liquidity to the retail end.
Manufacturers, foreign investors and SME’s have more forex demand than the spare parts sector, and also most of these spare parts are exported by Nigerians in diaspora who have zero demand for any forex. I know of many people who ship containers of cars and spare parts to Nigeria and divert the earnings in naira into real estate.
It’s better for the government to target sectors that can stimulate the economy TODAY in the face of this global pandemic than invest in automobile manufacturing, as there are many developing countries with zero automobile manufacturing. I saw more than 50% of clean Toyota minibus/van with AC being used as means of transportation during my short visit in Manila Philippines even though they still have their locally made Jeepney aka keke marwa.
So my question to you is “ should the government continue with its high duty and levies and let Nigerians continue to ride in old jallopy buses thereby risking their lives due to brake failure as a result of high cost to replace a brake caliper”?

Remember a healthy people is a healthy nation and health is wealth.

3 Likes

Re: FG To Slash Levy On Imported Cars To 5% From 35% by Truth234(m): 3:10pm On Nov 23, 2020
olaboy1:


Cars and spare parts importers are not the cause of Nigeria’s dwindling economy and as you may know more than half of our forex is in the hands of hoarders and speculators despite the government injection of foreign exchange to create more liquidity to the retail end.
Manufacturers, foreign investors and SME’s have more forex demand than the spare parts sector, and also most of these spare parts are exported by Nigerians in diaspora who have zero demand for any forex. I know of many people who ship containers of cars and spare parts to Nigeria and divert the earnings in naira into real estate.
It’s better for the government to target sectors that can stimulate the economy TODAY in the face of this global pandemic than invest in automobile manufacturing, as there are many developing countries with zero automobile manufacturing. I saw more than 50% of clean Toyota minibus/van with AC being used as means of transportation during my short visit in Manila Philippines even though they still have their locally made Jeepney aka keke marwa.
So my question to you is “ should the government continue with its high duty and levies and let Nigerians continue to ride in old jallopy buses thereby risking their lives due to brake failure as a result of high cost to replace a brake caliper”?

Remember a healthy people is a healthy nation and health is wealth.

You know, you see, you this and that. It is hard to engage someone that based analysis of over 200 million population on personal experiences.

I take a bow!.
Re: FG To Slash Levy On Imported Cars To 5% From 35% by odimbannamdi(m): 4:47pm On Nov 23, 2020
OneTemplate:


She is right and you are an ethnocentric Igbo bigot unable to see the big picture and only interested in what benefits Igbo individual rather than what is in the interest of millions of Nigerians in the biggest black nation on Earth.

Nigeria must take drastic steps to secure locally innovated and home-driven economic growth post covid socio-economic devastation because all other nations of the world will be too busy trying to spark their own economy to life to even be interested in helping us.

Put your bigotry aside for a second if you can. Innoson should respond and slash price to compete or get out of the way. Any truthful Nigerian businessman will tell you it is criminal for bulk head articulated lorries to continue charging in excess of 400k to transport goods from Lagos to even Minna simply because owners of these lorries paid huge duties to import them and accordingly need to recoup their capital outlay.

Crash the price and watch competition fashion a truly competitive transport and haulage sector that will help many businesses grow and thus aid the economic progress of Nigeria.

Are you implying that the import duty paid on the vehicle that is wholly or significantly impacting the cost of haulage?

What if the vehicle was imported a decade ago? Dont you think the import duty cost must have been recouped already?

What about variable costs like fuel, oil, maintenance, parts, levies, gate-passes, etc...dont you think they constitute a significant of these haulage costs?

Looking forward to your response
Re: FG To Slash Levy On Imported Cars To 5% From 35% by odimbannamdi(m): 4:49pm On Nov 23, 2020
niyidenrele:
Reduce the money for people to buy cars, let them buy at a cheaper prices, then later increase the fuel prices to #200,so that people will complain less , mind you Dangote Refineries would soon start production, there serving as a source to consume his fuel

Hmmm...i see the big picture! I see it! You, sir, are very wise... grin
Re: FG To Slash Levy On Imported Cars To 5% From 35% by odimbannamdi(m): 4:59pm On Nov 23, 2020
OneTemplate:


Exactly. The immaculate and mechanically sound articulated head below is an examples of the type Nigeria need to aid her haulage sector.

At 15k euros, then add 35% duty and many miscellaneous charges, this is simply beyond the power of many but the Dangotes and BUAs of the world.

This move is long overdue and one I am sure would not have happened but for the economic devastation of covid-19.


Sir, first of all, it is actually dysfunctional for trucks like this to be used in hauling goods a distance of nearly 700km (the equivalent distance between the Lagos - Minna example you cited in your earlier post). Anything above 300km should be transported via modes like rail. We will leave this side out as it is out of scope here

Secondly, dont you think if there is a wanton availability of these trucks, it will overburden our already strained facilities like roads and ports?
Re: FG To Slash Levy On Imported Cars To 5% From 35% by 49cents(m): 10:55pm On Nov 23, 2020
ethicallyright:

A car assembler cares little about innovation and thus does not produce the major parts of a vehicle . A car assembler buys parts like any other mechanic but works hard in packaging and branding what were previously purchased car parts to become a brand new vehicle.

Do you think car assembling is a necessary road to car manufacturing..

Or do you think one can become a manufacturer from the word go?

In my little research of car manufacturing I was shocked to note that even the big names have focused on assembly of their cars.... because of the need for economies of scale...so even a big name like BMW can send an engine design (which they may even buy of from the original owner) to engine makers for thier cars and do the same for all the parts
Re: FG To Slash Levy On Imported Cars To 5% From 35% by fidtopade: 2:10am On Nov 24, 2020
When will this policy take effect?
Re: FG To Slash Levy On Imported Cars To 5% From 35% by sultaan(m): 7:18am On Nov 24, 2020
odimbannamdi:


Are you implying that the import duty paid on the vehicle that is wholly or significantly impacting the cost of haulage?

What if the vehicle was imported a decade ago? Dont you think the import duty cost must have been recouped already?

What about variable costs like fuel, oil, maintenance, parts, levies, gate-passes, etc...dont you think they constitute a significant of these haulage costs?

Looking forward to your response

If you are going to start a transport business and you buy a truck from America for $6000, shipped it for $1200 and paid almost $6000 as import duty and levy.
By the time your truck hits Papa road you are $13200 committed into your business, now you start charging N2000 on you 15 seater bus.
You pay one passenger to MC Oluomo and one to Nigeria Police and one to council et al. You have N24k left for driver and fuel because he can only make 2 trips to ibadan.day due to bad roads.
On very good days you make N50k a day $100 excluding fueling.
$13200 will take 5 good months if nothing breaks and no accident to get even.
So that is a good business, but if you own trailers and you seat at Papa road for a week to get one load, how will you catch up?
Re: FG To Slash Levy On Imported Cars To 5% From 35% by odimbannamdi(m): 9:15am On Nov 24, 2020
COMPAQ:


Very well said. I struggle to see the correlation between the levy and daily costs of operating the vehicle. The levy is one off, but costs of doing business such as fuel, maintancence, etc are daily.

Having said that I do support the deregulation of petrol though. But the point is the government need to be smarter. Having good roads and also effective train services may be more useful in the long run for efficient transfer of food products across the country than reduction in levy.

You echo my thoughts!

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