NEWS

IMPORT DUTY REDUCTION ON USED VEHICLES, DANGEROUS TO ECONOMY – Auto Expert


An Expert in auto business has advised that any reduction on duties and levies on used vehicles otherwise known and called “Tokunbo” would be injurious to the Nigerian economy.

The Vice President, Business Development, Dana Motors, Mr Olu Tikolo, recently sounded this warning during a Media parley at his Akin Adesola office, Victoria Island, Lagos on the partnership between Cars45 and Dana Motors.

Information has that Cars45 provides one of a kind of platform for used cars in Nigeria, giving a private network of buyers the fastest way to find the perfect car that fits their buyers’ needs.

Tikolo, amidst calls some Stakeholders for a reduction on the tariff for imported vehicles by 15 per cent, said such reduction could derail the existing auto policy.

In a related development, the Comptroller-General of Customs, Hammed Ali, had also called for same reduction by 35 per cent with an aim at curbing smuggling of vehicles into the country.

Tikolo, an expert in automobile business believed the idea of reducing the tariffs would adversely the desired economic drive of the Nigerian nation state.

According to him, “we must understand the prospect of the 2013 Auto Policy by the previous government which is aimed at encouraging local manufacturing of cars in Nigeria. The call for the reduction in the tariff for importation of used cars portends a great danger to the economy and also for investors’ confidence in our economy.

“Only the manufacturing sector can contribute effectively to the Gross Domestic Product (GDP) of the country which cars assembly and manufacturing can contribute up to 7 per cent”

Story by Deji Abdulbasit. Online Editor: Olamide Yinusa. Publisher/CEO: Henry Femi Ojoye Jr.

Categories: NEWS

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