Friday, 2 January 2015

Car News: Why FG shifted Tokunbo car tariff increase to April 2015

The Federal Government may have bowed to
pressure on the implementation of the 70 per cent
tariff on imported used vehicles by postponing its
enforcement to April 30, 2015.
This is the third time in six months that the tariff
implementation date will be shifted. It was first
moved from July 1, 2014 when the government
decided to implement the policy in two phases of
35 per cent apiece to January 1, 2015.
The government said then that the arrangement
was to enable local vehicle assembly plants to
ramp up production in order to meet the nation’s
demand for brand new vehicles.
The PUNCH had exclusively reported on
Wednesday that the cost of clearing imported
second-hand vehicles would rise substantially
from today (January 1, 2015) as the second phase
of the 70 per cent tariff was meant to begin. By
implication, Nigerians would have to pay more for
such vehicles.
But the Federal Government, in a statement
issued on Wednesday by the National Automotive
Council, an agency of the Federal Ministry of
Industry, Trade and Investment, said it had
deferred the implementation of the new tariff to
April 30, 2015.
The Director-General, NAC, Mr. Aminu Jalal, said
in the statement that the postponement was due
to the delay in the establishment of a vehicle
finance scheme.
He said, “The arrangements for the establishment
of the affordable vehicle finance scheme suffered
a delay of about four months due to the Ebola
Virus Disease.
“The staff of the collaborating bank, Wesbank of
South Africa, delayed their planned trip to Nigeria
to set up operations from September 2014 to
January 2015. Hence, the new date for the start of
operations of the financing scheme is April 2014.
Accordingly, the Minister of Finance has been
asked to extend the levy deferment on used cars
to April 30, 2015.”
The Federal Government had imposed the 70 per
cent of the cost of all fully built vehicles (both old
and new) as tariff being part of an automotive
policy introduced in September 2013 to
discourage the importation of vehicles.
Source: The Punch


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