Nigeria not losing revenue under auto policy – Official

An official of the National Automotive Design and Development
Council, Mr Luqman Mamudu, says the country is not losing
revenue under the automotive policy contrary to speculations in
some quarters.
He told the News Agency of Nigeria in Abuja on Friday, that the
speculations were the handiwork of those still opposed to the
policy for their selfish interests.
Mamudu, who is the council’s Director of Policy and Planning,
said the policy would boost government revenue, especially with
the recent hike in vehicle import tariff.
Mamudu said, “Before the NAIDP, the duty on vehicles below
3000 cc was 20 per cent and most vehicles imported into the
country fall under this category.
“In the past, only cars above 2000 cc attracted 35 per cent. But
with the policy, the duty on all cars is now 35 per cent.
“Commercial vehicles attracted 10 per cent before the policy,
but now, all fully built commercial vehicles attract 35 per cent.
“The so called concessionary import granted assemblers is 20
per cent for commercial vehicles and 35 per cent for cars. So,
where is the loss of revenue?’’
The director argued that even the duty on semi-knocked-down
kits imported by assemblers for commercial vehicles were in
some cases as high as 10 per cent.
According to him, only completely-knocked-down kits with very
high employment potential along with equipment imported to
build vehicles attract zero per cent.
Mamudu said that the concessions granted to assemblers under
the policy were carefully selected to make the industry fairly
attractive to local and foreign investors.