Nigeria’s auto dealers are not happy, neither are those seeking to buy Tokunbo cars.
Following the implementation of the new automotive policy, Customs now charge 35% on salon cars, while sport utility vehicles and other luxury vehicles attract 70% of their value as import duty
The increase of vehicle import duty to 35% is affecting their business and they want federal government to cut it to 20%.
On Tuesday, the dealers under the aegis of Association of Motor Dealers of Nigeria called on the Federal Government to slash the import duty on vehicles from between 35% and 70% to 20%.
It said the current rate being charged by the Nigeria Customs Service as import duty is too high, making the cost of imported vehicles super expensive.
The President of the association, 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.
Recall that following the implementation of the new automotive policy, the Customs now charge 35% on salon cars, while sport utility vehicles and other luxury vehicles attract 70% of their value as import duty.
This is besides other charges being paid on the vehicles before they finally cleared at the point of entry.