Agents Predict 15% Rise in Car Import Over Tax Removal
Licensed Customs agents have said that the removal of the import adjustment tax by President Bola Tinubu would boost car importation by 15 per cent.
According to the founder of the National Council of Managing Directors of Licensed Customs Agents, Mr Lucky Aniwero, while reacting to the recent order by the President for the suspension of the five per cent excise duty on telecommunications and the import tax adjustment levy on vehicles from 2,000 cubic capacity upwards, said the removal of the tax would increase importation of vehicles by 15 per cent.
“You know the exchange rate has been affected. So, the boost in car importation won’t be much. We are looking at between a 10 per cent to 15 per cent boost because the exchange rate would actually reduce importation,” he explained.
Amiwero said the tax removal would also increase the movement of vehicles into the country.
Also Read: Marketers Call for Suspension of VAT on Diesel
“It is for specific vehicles, I think it is from 2,000 cubic capacities upwards vehicles like Toyota Corrolla are going to enjoy that. And it means it is going to increase the movement of vehicles into the country. So, the removal of this tax will boost the importation of vehicles because Nigeria needs vehicles.
“It will help to stabilise the system and increase the importation of vehicles.”
Also speaking, the Acting National President of the Association of Nigerian Licensed Customs Agents, Mr Kayode Farinto, lauded the President for the removal of vehicle tax.
He urged the government to also ensure the review of the 7 per cent port development levy.
He said, “Because we have been having forex challenges, the government is supposed to bring out palliatives. It is one of our prayers that the government should bring out palliatives to reduce the suffering of the people. So, this is one of them. The import adjustment tax that has been removed is also one of them.
“We also want the government to look at the 7 per cent port development levy so that it will ameliorate the suffering of the people.”
According to Farinto, market forces are now determining the foreign exchange.
