FG Plans Gradual Hike In Vehicle Import Duties

Auto Policy - FG Plans Gradual Hike in Vehicle Import Duties



Indications have emerged that the federal government may review the new National Automotive Policy, with plans to adopt a phased increase in vehicle import duties instead of the one-off hike of the tariffs by 50 per cent, which it announced in November last year.



LEADERSHIP's investigation showed that the federal government is considering a gradual increase of the vehicle import tariff over a period of 10 years after which it would totally phase out importation of used cars. The new rate which is expected to become effective in two weeks time, is however not yet disclosed by government.



The National President of the Association of Nigerian Licenced Customs Agents (ANLCA), Prince Olayiwola Shittu, also dropped the hint when he informed the a meeting of licenced clearing agents in Port Harcourt on yesterday that based on the interaction between ANLCA and federal government representatives, "the contentious automotive policy is to be revisited with a view to reversing the policy in favour of a phased increase in the tariff regime over a period of 10 years. This is to be carried out within the next two weeks."



The agents at the meeting also discussed the issue of the new Pre-Arrival Assessment Report (PAAR), with the national president taking time to explain the PAAR scheme, while encouraging them that in spite of the hitches being experienced with the take-off of its implementation, the systems remained the best option to facilitate trade through the ports. He said that with the joint instrumentality of the Customs trade hub, the CET (Common External Tariff) and explanatory notes, proper classification of imported items can be accurately established.



Source

It appears that the FG is finally listening to reason. The new auto policy already contains incredible incentives for Auto manufacturers which have resulted in several Big auto companies showing interest. There was really no need to abruptly increase tariffs at the expense of jobs for an industry which is still in its infancy.



While I understand that the FG is doing this quietly to save face, I applaud GEJ for stepping in. Such a reversal could not take place without his OK. Aganga goofed on this one.



As we can see, the new policy is already yielding results and we all should hope that these Auto manufacturing companies succeed and create needed jobs. This can happen without sacrificing existing jobs and blocking honest importation businesses from continuing to thrive.



This explains why up 'till now, the tariffs on importation of automobiles have not yet changed since the announcement was made.



Once again, kudos to GEJ Please drop your comments below...