FG postpones 70 percent tariff for Tokunbo as charge on new cars take effect

The Federal Government has postponed implementation of the 70 per cent tariff on imported used vehicles to April 30, 2015.

This is the third time in six months that the tariff implementation date will be shifted.

It was first moved from July 1, 2014 when the government decided to implement the policy in two phases of 35 per cent apiece to January 1, 2015.

The government then explained that the arrangement was to enable local vehicle assembly plants increase production in order to meet the nation’s demand for brand new vehicles.

FG imposed the 70 per cent of the cost of all fully built vehicles (both old and new) as tariff being part of an automotive policy introduced in September 2013 to discourage the importation of vehicles.

It also announced a zero per cent tariff on Completely Knocked Down units (vehicles) and five per cent to 10 per cent on Semi Knocked Down units to encourage the establishment of local vehicle assembly plants.

But in statement issued by the National Automotive Council (NAC), an agency of the Federal Ministry of Industry, Trade and Investment, FG said it had deferred the implementation of the new tariff to April 30, 2015.