The Association of Motor Dealers of Nigeria has urged the Federal Government to further extend the slash in duties and tariffs on imported vehicles.
In January 2020, the government reduced the duties and tariffs on imported vehicles that carry more than 10 persons from 35 per cent to five per cent, a development that was greeted with commendations.
Reacting to the development, industry operators under the aegis of the Association of Motor Dealers of Nigeria lauded the initiative of the government but stated that the reduction should be extended to cars and minivans.
The Comptroller-General of the Nigerian Customs Service, Hameed Ali, who announced during an interview with newsmen revealed that the service is awaiting official communication from the Finance Ministry to fully effect the development.
Ali disclosed that the vehicle tariff reduction is contained in the 2020 Finance Act and initiated by the NCS to ease the cost of transportation in Nigeria.
“I have been torn apart by many people criticizing the new tariff, saying I used my connection to get it done but this is in the interest of Nigeria,” he said.
Speaking on behalf of the operators, the National President, AMDON, Ajibola Adedoyin, said, “The reduction is a welcome development.
Adedoyin added: “We’ve been at the forefront of this for some years now, trying to let the government know that there is a need to allow levies to be reduced on imported used vehicles. We’ve made several presentations to relevant authorities.”
“However, we feel there is still room for improvement. Our line of argument is that whatever affects transportation affects the economy and I think it was based on that thinking that the reduction in clearing cost was only limited to commercial vehicles and tractors.”
Adedoyin said many cars were used for commercial transportation, adding that they should also enjoy a reduction in import duties.
He said, “We want Mr President to also know that a larger percentage of the so-called cars that are not captured in this reduction is used for commercial transportation. That is why we said the government can do more.
“The cars should be included in this tariff reduction. We are not making a case for luxurious ones. They shouldn’t have limited it to vehicles that can carry more than 10 persons.”
Adedoyin added, “If you look at our roads, there are some vehicles that are used for commercial transportation that only carry six or seven passengers. These sorts of vehicles are widely used commercially.”
These vehicles, he said, were everywhere for commercial purposes as well as cars
The AMDON president reiterated that this was why the association was calling on the government to do more and capture this category of vehicles in the tariff reduction.
Meanwhile, the Vice President of Nigeria, Professor Yemi Osinbajo has assured the citizens of the country that the nation is capable of overcoming all its current challenges.
Osinbajo added that Nigeria has a great future and he believes all the challenges facing the nation are surmountable.