LCCI & automobile importers opposes new import tariff hike proposed by Govt.

02/04/2020

Posted by: Jane Osuagwu

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The lCCI and automobile importers have kicked against the proposed import tariff hike by the Federal government.

The Lagos Chamber of Commerce and Industry (LCCI) and automobile importers across the country have come out to protest the Federal Government's plan to increase the import tariffs on new and tokunbo vehicles.

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LCCI and automobile importers are opposing the new import tariff hike proposed by the Federal Government

Last week, Naijauto reported the National Automotive Design and Development Council (NADDC) is proposing to impose a 100% import tariff on Fully Built vehicles and 125% on used vehicles, as against the used car import tariff current rate which was 70%.

This new development was disclosed by Mr. Farouk Umar, NADDC Director of Policy and Planning at a stakeholder meeting held in Abuja. There, he said it was part of the commission's intention to amend the National Automotive policy. 

However, the Director-General, the Lagos Chamber of Commerce and Industry, Dr. Muda Yusuf said the proposal was unrealistic.

He gave his opinion:

The vehicle tariff increase is not a realistic proposition. The automotive policy in its present form has done incalculable damage to the transport sector.  Cost of vehicles has become prohibitive and beyond the reach of most Nigerians.

The entire vehicle assembly value chain has been disrupted making cost of vehicles prohibitive. The whole idea of the auto policy needs a complete rethink. A country that is practically totally dependent on road transportation will not contemplate such an atrocious review of import tariff on vehicles

Few vehicle importers who spoke to local media about the proposal doubted the possibility of it being passed.

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Vehicle importers doubted the possibility of the proposal working in Nigeria

>>> In a new development, FG is looking for private sector input into the proposed auto legislation: FG seeks stakeholders’ expertise on auto policy amendment

A car importer identified as Fanu Lasisi said the 100% import tariff imposed on brand new vehicles was too high.

He said,

It is not nice to expect somebody who bought a car for N20m to pay N20m as import duty for the car. The tariff should be as low as 10 per cent to encourage buyers.

Lasisi disclosed the proposal was the same method the Ghanaian government used to discourage its citizens from purchasing used vehicles.

He also pointed out their government has infrastructure put in place to enable the masses to acquire new vehicles and maintain them.

Another car importer, Mr.Akwaze was also skeptical of the proposal seeing the light of the day.

They are trying to copy Ghana but that is not the way the Ghana tariff is structured. It is 45 per cent for used cars and 10 per cent for new cars.

>>> See our news section for other car news gist, updates, and trends

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Jane Osuagwu

Jane Osuagwu

Car prices

Jane Osuagwu is an automotive writer at Naijauto.com. She's a car enthusiast who loves creating educative and informative topics on cars, ranging from maintenance tips to updates on the latest trend in the auto industry in concise and friendly writing. 

Jane is also a blogger and loves reading, inspiring people and getting involved in personal development projects.

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