As the Federal government gets set to introduce the 35 percent levy on the imported used vehicles in the country on July 1, stakeholders in the Maritime industry have expressed fear over the possible effect of the development on their businesses and on the economy at large.
Recall that the Nigerian Customs Service on July 5,2014 commenced the implementation of the 35 percent duty on fairly used vehicles imported into the country, an action that did not go down well with importers and agents thus sparking off series of protests in Lagos.
With the introduction of the 35 percent levy component as being proposed by the government on July 1, the total percentage rate expected to be paid on any fairly used vehicle imported into the country would now be pegged at 70 percent.
While bemoaning the possible hardship that will come with the full implementation of the new auto policy, a Licensed Customs agent, Mr. Tony Anakebe wondered what would be the fate of those who were finding it difficult at the moment to clear their vehicles from the port with the new duty rate by the time the levy aspect would be introduced on the said date.
Anakebe observed that while some agents were still grappling with convincing the importers to understand that there was a new duty in place, they would be left with an additional burden of trying to convince the importers that the development was not their own making.
According to him,” where we are going to have another little problem is the 1st of July, with another 35 percent levy addition making it 70 percent, I wonder what will happen then. Anybody that has his vehicle there now and cannot clear it, maybe because of Financial constraints or for any other reason, by that 1st of July, he has to pay 70 percent or he forfeit his vehicle”.
He maintained that the policy was untimely as the country had not yet matured enough to manufacture vehicles in commercial quantity to meet the local demands arguing that importing Completely Knocked Down (CKD) vehicles and assembling them in the country did not confer on the country the status of vehicle manufacturer.
Mr. Anakebe contended that the policy was going to come with untold hardship to terminal operators who deal only on vehicles as well as job loss for Nigerians who worked at those terminals as according to him, if six thousand units of vehicles were coming to Nigeria before now, with the introduction of the new policy, it would be reduced to about two or three thousand units.
On his part, the Chairman, Association of Nigerian Licensed Customs Agents (ANLCA), PTML Chapter, Prince Bola Adediran described the proposed introduction of the 35 percent levy component on fairly used vehicles as uncalled for.
Adediran who spoke glowingly in favour of the 35 percent duty however called on the federal government to retrace its step as regards the introduction of the levy component of the new auto policy.
He noted that if the levy eventually come on stream, it would not only affect the importers and agents but that it would affect the entire Nigerians thus the reason behind the stakeholders efforts at trying to get the government to rescind that decision.
“The only one I will talk about is the levy coming again in July 1. That one is uncalled for. By giving 35 percent increment in this duty, if i am not comfortable as an importer, i can go to my house and do some calculations and if nothing comes out of it, I will kill it but this another levy coming, the federal government must kill that idea”, he said.
