Vehicle Import Tariff: Kwara car dealers laud Customs boss over call for reduction

By Matthew Denis

Car dealers in Ilorin, Kwara State have applauded the Comptroller-General of Customs, Rtd. Col. Hameed Ali  for the call for reduction in tariff on vehicles imported into the country.

The dealers, who spoke to Pilot Business at the weekend, described the call as a welcome development, saying it is high time the government address issues affecting people in the auto business.

The Director of Globe Motors, Usman Abubakar lamented that since the government introduced 70 per cent duty rate on imported vehicles activities of smugglers skyrocketed in the country.

He commended the Customs boss over the call for an urgent review of the tariff, noting that the high duty rate on imported vehicles has caused untold hardship to car dealers.

Another car dealer, Sanusi Motors, Alhaji Bello Sanusi said the high duty on imported vehicles has forced many out of business.

“God bless the comptroller- General for realising that the duty is too high and the earlier the government realises the need to reduce it, the better.

“Before government bring up policies, they should talk to those who are in the sector to  know areas it will affect them but the  nonchalance by those in authority to the plight of businessmen is pathetic.

“They don’t know how the people are going to feel, they just wake up and introduce policies. The people are suffering and there is hunger in the land. So they just have to reduce the tariff.

“When you use huge amount to clear vehicle, how much do you want to sell it? Yet we are talking about fighting corruption,  when somebody brings goods and he couldn’t get the money to clear it, such person will be forced to get himself into fraudulent acts to clear his goods because he would not want to abandon it at the port.”

On his part, the Chairman of Gabson Motors,  Barrister Gambo Michael Zirra noted that the call by the Customs boss shows that he is sensitive to the plight of   importers, expressing hope  that government approves the request.

According to him, if government reduce the tariff, it would help improve its revenue base as importers would be willing to pay the duty rather than go through the risk of smuggling.

“We hope the government approves the request because it is a good move that will help reduce smuggling. That shows the Comptroller General of Customs knows what he is doing and he is a listening leader.

“Importers have been complaining about high duty rate on imported vehicles and yet the vehicles are still smuggled in without duty payment making government lose in both ways. If we reduce tariff, no importer will be willing to smuggle,” he added.

Similarly a Clearing Agents, Alhaji Mohammed Hamisu said other countries don’t charge high tarrif on imported goods, urging the Federal Goverent to do same.

“We have advised Customs on this matter severally. New vehicles coming from Cotonou to Ghana attract five per cent duty rate. The Ghana government reduced the duty rate and made the duty on old vehicles higher in order to discourage importation of old vehicles.

” The Federal Government wants to encourage local manufacturers of vehicles but there are no manufacturers in place to meet up the number of vehicles required in Nigeria.

“So, the call by the Customs boss is a welcome idea; Federal Government should reduce the tariff especially for commercial vehicles. The duty rate for commercial vehicles should be reduced to 10 or five percent to encourage movement of persons.”

Hamisu stated that lack of consultation with stakeholders before policies are put in place has remained a major cause of problems facing the maritime sector.

Recall that Col. Ali had last week called on the Federal Government to reduce the 35 per cent levy on imported vehicles so as to check the rising cases of smuggled vehicles into the country.

Ali, who spoke during the unveiling of a Strategic Revenue Growth Initiative, which held at the Ministry of Finance, stated that vehicles imported into the country attract an import duty of 35 per cent and an additional levy of 35 per cent, bringing the total duty payable to 70 per cent, which he said was too high and fuelling smuggling.

“The 35 per cent is a baseline which is the duty, but the 35 per cent levy is what we think should be tinkered with. We should be able to reduce that to a level that it would be affordable. 70 per cent is on the high side, there is no doubt about that for new vehicles but we cannot touch the baseline of the tax regime,” Ali had stated.