Car Dealers Calls On FG To Extend Tariff Reduction On Cars, Minivans

The Association of Motor Dealers of Nigeria has called on the Federal Government to extend the reduction of duties and tariffs on imported cars and minivans that carry less than 10 persons.

It will be recalled that the government in January 2020 reduced the duties and tariffs on imported vehicles that carry more than 10 persons from 35 percent to five percent, a development that was greeted with commendations.

Reacting to the development, industry operators under the aegis of the Association of Motor Dealers of Nigeria lauded the initiative of the government but stated that the reduction should be extended to cars and minivans.

They told journalists in Abuja that cars and minivans make up the bulk of vehicles used for intra-city and inter-city transportation.

Speaking on behalf of the operators, the National President, AMDON, Ajibola Adedoyin, said, “The reduction is 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 to be reduced on imported used vehicles. We’ve made several presentations to relevant authorities.”

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He added, “However, we feel there is still room for improvement. Our line of argument is that whatever affects transportation affects the economy and I think it was based on that thinking that the reduction in clearing cost was only limited to commercial vehicles and tractors.”

Adedoyin said many cars were used for commercial transportation, adding that they should also enjoy a reduction in import duties.

He said, “We want Mr. President to also know that a larger percentage of the so-called cars that are not captured in this reduction is used for commercial transportation. That is why we said the government can do more.

“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.”

Adedoyin added, “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.”

These vehicles, he said, were everywhere for commercial purposes as well as cars.

The AMDON president said this was why the association was calling on the government to do more and capture this category of vehicles in the tariff reduction.