₦airaland Forum

Hello Nairalander

I guess we are all aware that one of the key government policy in the automotive industry is tax reduction on used and new cars. According to the plan, the used car importation will be taxed 5% instead of the current 35%. New cars will be taxed 35% instead of the current 70%. So my question is that, Will the above reductions would likely reduce the cost of cars say from January and February?

Bros nothing drops in Nigeria even if govt crashes levies to 1%

Is likely to crash. Since is mostly for commercial vehicles

EngrXrix:
Bros nothing drops in Nigeria even if govt crashes levies to 1%

not all the time, I think the positive effect should be felt in term of price reduction in automotive industry.

Nope. Whatever gains has been wiped out by the astronomical exchange rate

Import duty is 35% of shipping , insurance car value
Tariff/ levy aaa[sup][/sup]which is another tax is 35%
And sales tax is 7.5% of both taxes
I don't know if they have stopped national automotive council 2% tax.

Because of all these taxes an average Nigerian pays more than twice the value of a cars when compared to an American.
How can you get ahead as a transporter if you just paid double for the price of a vehicles, run it on the bass roads and collect naira as revenue.

When we stopped seeing those Marco polo on the roads that was when we got into trouble.
A government changing policy after seeing everything fail does not me it is aimed at Innoson, the whole of Nigeria is at stake

Saao:
Hello Nairalander

I guess we are all aware that one of the key government policy in the automotive industry is tax reduction on used and new cars. According to the plan, the used car importation will be taxed 5% instead of the current 35%. New cars will be taxed 35% instead of the current 70%. So my question is that, Will the above reductions would likely reduce the cost of cars say from January and February?

Dollars as at today is N484/$. Even if there'll be decrease, it's majorly for public transportation vehicles