Revise automotive policy, Tokunbo dealers beg FG

Chief Sunday Akibo, founder and former President, United Berger Motor Dealer Association, on Tuesday said the new automotive policy would send dealers of fairly used vehicles out of business if not reversed.

Akibo told NAN in Lagos that the policy had reduced fairly used motor business by about 40 per cent since government announced its planned introduction.

The Federal Government had announced the implementation of the new tariff regime from 35 per cent to 70 per cent from 1 July.

Following the directive, the Nigerian Customs Services (NCS) commenced implementation of the 35 per cent duty on imported vehicles in May from its original 10 per cent.

The implementation of the tariff resulted in protests by clearing agents at the Tin Can Island Ports.

“The 35 per cent duty on imported used vehicles is affecting our business. We find it difficult to sell our cars now.

“Customers are no longer patronising us as before because of the increase in price.

“Before now, we can make five per cent profit from the cost of landing of the vehicles after purchasing but now we make less,” Akibo said.

Akibo also said that the association had met with the relevant authorities to let them know the consequences and effect of the increase in tariff on the masses.

“With the increase we now pay duty of 70 per cent for a vehicle. When we pay 35 per cent for duty and another 35 per cent for NPA charges, the masses will not be able to buy a car,” he said.

The association’s leader noted that importation of fairly used cars had enabled some people who could not afford a brand new car to own one.

Mike Odogwu, who spoke on behalf of the Chairman, M.C1, United Berger Motor Dealer Association, also said that the business was booming before the introduction of the policy.

Odogwu said that since the tariff, cars sold for N600, 000 had been increased to about N1 million.

“The vehicles that we sell normally at the N850, 000, we can hardly buy for N1million. Before, if you sell a car between N850, 000 and N1 million, you can make a profit of about N100, 000 to N120, 000 but now we make far less.”