Nigeria commences enforcement of
new tariff on imported vehicles
By Uche Usim
By Uche Usim
The tariff, which is an offshoot of the new automotive
policy, clearly explains that fully built cars (ready to drive) now attract
duty of 35 percent and levy of another 35 percent of the cost of the vehicle
bringing the total tariff to 70 percent.
The new
policy also puts the age ceiling for private vehicles at 10 and commercial ones
at 15.
The
spokesman of the Tin Can Island Command of the Nigeria Customs Service, Chris
Osunkwo, who confirmed the enforcement of the new tariff to Daily Sun on
phone said the circular from the Customs high command, says the new development
takes immediate effect.
He however
said the command would seek full clarification in some grey areas in the
circular, especially whether it will affect both used and new vehicles.
“We’ve been
hearing this planned increase in vehicle tariff since last year but we got the official
document, a circular to that effect Tuesday and it said it is with immediate
effect. As anyone will expect, the valuation unit is expected to take off
immediately. But we still need to clarify from the headquarters if the new
tariff will affect both used and new cars, the circulars just say fully built
cars. Usually, when circulars like this come, it comes with clarification,” he
said.
The
development is already sending jitters down the spines of vehicle dealers and
importers Lagos, who lamented that it will hurt their businesses and hike vehicle
prices by at least 300 percent.
Clearing
agents at the PTML command of Customs said the policy is already strangulating
their business since it took effect on Wednesday, while scores of clearing
agents and importers at the Tin Can Island Port yesterday held a peaceful
protest urging the government to revert to the status quo.
They said
the new policy, aside hurting the masses, will drive hundreds of them out of
jobs. Chief Osita Chukwu, National Coordinator of Save Nigeria Freight Forwarders
Importers and Exporters Coalition (SNIFFIEC), said the policy is completely
anti-masses and should be resisted.
“We cannot
accept the 70 percent tariff hike. It’s going to kill the masses. How many
people will be able to buy used vehicles now? How many people can afford new
ones as well? We totally reject this. We are going to shut down the ports if
the government doesn’t rescind its decision on this matter. By the time over 3
million importers, exporters and other stakeholders withdraw their services
from the ports, you can imagine the implication”, he said.
One major
posh car dealers at the popular berger automobile market confided in Daily Sun
that the development will fuel smuggling as that becomes the last option of the
dealers.
“From latest
developments, it means cars of 2003 are no longer allowed into the country.
That’s bad. Nigeria currently makes about N30 billion yearly from used vehicle
importation. It will lose that revenue with the new policy because only very
few importers can afford to pay all the legitimate duties and levies. When you
pay that, how much will you now sell the vehicles? Over 300 percent increase. A
car of N400,000 will jump to over a million naira. Do you know the implication
of that? People will resort to smuggling because they want to evade taxes and
duties. When this starts, it will be another headache for the Customs”, he
said.
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