Car Dealers Reject 15% Levy Imposed On Imported Vehicles

The Association of car deaders have rejected the 15 percent levy imposed on imported used vehicles by the Nigeria Customs Service (NCS).

Naija News reports that the NCS had imposed a 15% National Automobile Commission levy on imported used vehicles in the country, with effect from the 1st of April 2022.

In a recent statement by its spokesman, Timi Bomodi, the service said the new levy was in compliance with the Economic Community of West Africa (ECOWAS) Common External Tariff.

Reacting to the new development, the Lagos chapter Chairman of the Association of Motor Dealers of Nigeria (AMDON), Metche Nnadiekwe, said the dealers would close their stores this week to protest the new levy.

In a chat with The Punch on Monday, Nnadiekwe said the new duty is mostly meant for new vehicles and not for used vehicles as stated by customs.

The AMDON chairman revealed that the association would be meeting this week and the outcome of the meeting would determine its next line of action.

He slammed the Federal Government for not carrying stakeholders along when making certain policies, adding that vehicle prices would go so high that many Nigerians would not be able to afford them if the levy is allowed to pass.

He said: “How can we continue to run a system like this? This is really bad and until we get things right in this country, we are not going to move forward. We will have a meeting, come up with a strategy and take a position on that.

“We may stop selling and do some checks and balances because if we are going to sell the ones we have, we are definitely going to buy new ones. The issue is that no one knows the policy they may introduce next week, so, hopefully, before the end of this week, we may stop selling and know what next to do.

“You know that the Nigeria Customs Service wakes up any time they want and try to introduce something extraordinarily without informing stakeholders.

“Some people are stakeholders in certain businesses and when you want to introduce certain policies, why don’t you consider them? Can’t you even discuss with them to know how these people are going to be affected?

“So, it looks as if it is a calculated attempt to deal with certain people. We don’t really know what is going on here and, remember, wherever there is this type of thing, Nigerians will be the ones that suffer it.”