- Auto Dealers Seek Reduction in Vehicle Import Duty
The Association of Motor Dealers of Nigeria on Tuesday called on the Federal Government to slash the import duty on vehicles from between 35 per cent and 70 per cent to 20 per cent.
It said the current rate being charged by the Nigeria Customs Service as import duty was too high, making the cost of imported used vehicles very expensive.
The President of the association, Mr. Ajibola Adedoyin, said this during a press briefing in Abuja on the ongoing seizure of vehicles across the nation imported without the payment of appropriate import duty.
He stated that the import duty being charged by the Customs on vehicles was one of the major reasons for the high rate of smuggling of automobiles.
According to Adedoyin, currently, the Customs charge 35 per cent on salon cars, while sport utility vehicles and other luxury vehicles attract 70 per cent of their value as import duty.
In addition, he said other charges were being paid on the vehicles before they were finally cleared at the point of entry.
The AMDON president explained that the current campaign by the NCS that allowed the service to seize vehicles without evidence of import duty payment was having adverse effects on the auto industry.
For instance, he said about 400 cars worth over N1.7bn had been seized by the NCS and urged the Comptroller-General of Customs, Col. Hammad Ali (retd.) to review the policy.
He stated, “As a responsible organisation that will not in any way support any form of illegality, we are left with no other option than to once again seek the magnanimity of the CG of Customs for another opportunity for all our members to submit all vehicles in their car shops for duty payment.
“If given this opportunity, AMDON will work with the NCS to ensure strict compliance, while we continue to discourage the smuggling of vehicles.”