Vehicle Dealers Seek Reduction Of Tariff On Cars

The Association of Motor Dealers of Nigeria (AMDON) has asked the Federal Government to extend the reduction of 5 percent on imported vehicles to cars and minivans.

According to the association, they carry less than 10 persons, which make up the bulk of the vehicles used for intra-city and intercity transportation.

It extolled President Muhammadu Buhari and the Comptroller-General of the Nigeria Customs Service, Hameed Ali for heeding its call for a tariff slash on imported vehicles, as a way of improving Nigerians’ livelihood and ultimately solving the transportation nightmare.

In an interview with journalists in Abuja at the weekend, the National President of AMDON, Prince Ajibola Adedoyin, said the decision to reduce the duties and tariff on imported vehicles that carry more than 10 persons from 35 per cent to 5 per cent was a soothing development that must be applauded.

Seeking reduction of duties on cars and minivans, he said: “It’s a welcome development. 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 be reduced on imported used vehicles. We’ve made several presentations to relevant authorities.

“In fact, in this part of our world, that is the only means of transportation accessible to over 200 million people and that is why it’s been part of our cry for the government to bring down the price of imported vehicles.

“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.

“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. We are talking of Toyota Sienna, Volkswagen Sharon and co. These vehicles are everywhere for commercial purposes. Even cars too.

“They are used for intracity and intercity transportation. That is why we said the government needs to do more and capture this category of vehicles in the tariff reduction.

“We’re giving him kudos for what he has done so far because it takes a strong political will to do so. But we urge him to do more”.

On the criticisms that have trailed the tariff reduction initiative, especially from local vehicle automobile companies who claim the move will distort the auto policy blueprint, Adedoyin said their position was illogical because Nigeria only has vehicle assembly plants that cobble together cars that are not accessible and affordable to Nigerians for commercial and personal use.

The AMDON President challenged the Nigerian Automotive Design and Development Council (NADDC) and other Nigerian vehicle assemblers to collaboratively come up with a locally designed and produced car that will cost between N1.5-N1.7 million.