Reduces duties on imported vehicles from 35 to 5 %

By Johnbosco Agbakwuru

The federal government, Thursday, said it was working on a policy that would require government Ministries, Department and Agencies,MDAs, to purchase home manufactured vehicles for official use.

The government also disclosed that it has already reduced duties on imported vehicles from 35 to 5 percent, explaining that its action was aimed at reducing high cost of transportation, which it noted, has effect on inflation.

Minister of Finance, Budget and National Planning, Zainab Ahmed, speaking at the maiden special media briefing by the MDAs,organised by the Presidential Communications Team at the Presidential Villa,Abuja.

She said state governments would also be engaged on the need to go for locally produced vehicles for their operational activities.

According to her, government was committed to purchasing locally made goods and vehicles.

She spoke thus:”Yesterday, I had said the Nigerian Customs Service has sent out guidelines to all its posts to begin immediate implementation of the new rates as approved by the Finance Act 2020 and I explained to you that when a bill like Finance Act is passed, first of all, it’s conveyed by the Parliament to the President. The President conveys it to the ministry and the agencies that have the various amendments as it affects their laws. Each agency reviews and releases guidelines for implementation.

“So Nigerian Customs has reviewed these guidelines and has notified all its operational posts to start implementing the new rates, so it’s taken effect.

“The federal government is committed to buying made in Nigeria products and buying made in Nigeria vehicles in particular. So we will be hoping to have a Federal Executive council approval to compel federal government agencies to buy made in Nigeria vehicles as much as is practicable. So when the security agencies need a security vehicle that is special design, and you don’t have it in Nigeria, we will still need to buy the ones that is outside.

“We’re hoping to also engage the states and encourage the states to take similar measures. It is important for us because we want to make sure the automotive industry survives and grows. The Federal Ministry of Industry, Trade and Investment has just finished a review of automated policy, which has been running now for seven years. I must say that the policy has not has not been reviewed before, so this is the first review that is being done and the essence of the review is to see whether it has achieved the designed targets.

*Once the ministry gets its approvals, then the review will be announced and perhaps there will be a refreshing of the measures that are contained in that policy.”

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