A statement on Wednesday by the Director-General and Chief Executive Officer, National Automotive Council (NAC), says levy on used cars would be further deferred to 30 April 2015.”
Giving reason for the deferment, Jalal said the federal government intends to balance vehicle supply and affordability with the production by the assembly plants.
The Director General said: “The government earlier deferred the imposition of the levy on used cars to December 31, 2014 to enable assembly plants ramp up enough production to satisfy demand.”
He said the government had asked the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okojo-Iwaela, to extend the levy deferment on used cars to April 30, 2015.
He explained that the automotive policy has five elements, one of which is market development, adding that under market development, tariffs are increased on Fully Built Unit (FBU) vehicle imports.
According to him, these tariffs are to be reduced gradually over the years, as the vehicle assembly and local content operations gain momentum.
The Nigerian market, he said has approximately 400,000 vehicles annually, with about 300,000 imported as used, which was the reason “the government has to balance vehicle supply and affordability with the production by the assembly plants.”
No comments:
Post a Comment