Dealers call on National Assembly to reduce duty tariff on ‘tokunbo’ vehicles

Mr Ajibola Adedoyin, the National President, Association of Motor Dealers of Nigeria (AMDON), has called on the National Assembly to review the automotive policy and reduce duty tariff on fairly used  vehicles.
Adedoyin made the call during a press conference organised by AMDON on Wednesday in Abuja.
He said that the high duty tariff on fairly used vehicles popularly known as “tokunbo’’, had made vehicles unaffordable for Nigerians thereby forcing them to patronise vehicles without duties.
“As the burden bearers and one at the receiving end, we wish to inform the public that what we should be clamouring for is a general consensus for the reduction of duty tariff and levies which is not the making of Nigeria Customs Service.
“The rather unpopular policies of the National Automotive Design and Development Council tagged automotive policy, is what has brought us to the position we are now.
“All in an effort to make imported fairly used vehicles  unaffordable, thereby forcing Nigerians to patronise “undutied’’ vehicles.
“We therefore call on our respected National Assembly members to kindly see that something is done on this policy because that is the cause of the problem at hand,’’ Adedoyin said.
Adedoyin said that there was need to improve on Nigeria’s rail system to enhance transportation, adding that owning a car was no longer a luxury but a necessity.
According to him, before now automotive policy on duty tariff on fairly used cars was 25 per cent, adding that now it is 35 per cent and SUV and luxury cars are 75 per cent.
He added that with this high duty tariff on cars, Nigerians could no longer afford tokunbo cars.
Adedoyin said that AMDON was aware of Customs collaboration with FIRS, FRSC, VIO and the Police on the Vehicles Identification Number (VIN), a move that would eventually block the registration of all “undutied’’ or unaccustomed vehicles in the near future.
Adedoyin said that as a result of this collaboration, the association in January pleaded with the management of Customs for a grace period with some rebate.
“This is to allow its members to clear all the unaccustomed vehicles at their car stands before the new system commences,’’ he said.
He said that the approval of AMDON’s request by the Comptroller-General of Custom of 60 per cent rebate across board for vehicles of 2015downward was for its members to regularise their documentation.
“NCS felt such opportunity should not be limited to only motor dealers but private vehicles owners who may wish to take this opportunity that was made specifically for motor dealers.
“We urge our members to make maximum use of this opportunity to regularise their vehicles and private vehicles owners who do not wish to do so are also not compelled to do so.
“But they should know they run the risk of being accosted along the highways by customs officials, which had always been the practice and might eventually lead to seizure,’’ he added.
According to him, AMDON was working on automation of all it members to interface with Customs so that potential vehicle buyers would have the opportunity to verify the authenticity of duty payment before purchase.