FG denies 70% duty on imported cars

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… Decries $3.4bn spent on Tokunbo annually

Federal Government has denied media re­port that 70 per cent duty has been imposed on imported used cars, pointing out that the approved duty remains 35 per cent.

Government also explained that those involved in the auto policy programme, includ­ing firms assembling cars in the country and creating jobs, would be able to import cars at 35 per cent while those putting strain on the foreign reserves with no intention to create jobs would pay 70 per cent duty on imported cars to discourage them from trading.

Tariff Rates on imported vehicles & Tyres Set to rise by 60%.

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The Federal Government has released the facts of new duties and levies payable on imported new and used vehicles as well as imported new tyres from next year, raising the tariff from 20 per cent to 70 per cent.

Dealers of imported vehicles estimated that the new rate would translate into an increase of 60 per cent on imported cars.

The Federal Executive Council had last month approved a new national automotive policy aimed at encouraging local production and assembling of new vehicles by having an imposition of a high import tariff on fully built vehicles. But the new rate was not given then.

House of Representatives endorse tariff increase on imported cars

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The House of Representatives Committee on Industry has endorsed the new automotive policy of the Federal Government, which seeks to increase the tariff on imported cars.

This is coming as the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said the potential for the automobile industry plan was to save as much as N550bn.

The Chairman, House Committee on Industry, Mr. Mohammed Onawo, said the implementation of the policy would attract new investments to the sector, protect local automotive manufacturers and create employment.

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