Medicine after Death: FG Extends 35% Waiver on Used Cars to December 31 after Cost of Vehicles Rose 40% 

In what can be seen as medicine after death, the Federal Government has barely 72 hours after the take-off of the full implementation of the Automotive Development Policy extended the waiver of 35 percent levy on used cars, popularly known as Tokunbo cars to December 31 this year. 
This means that the policy effectively takes off next year.
Minister of Industry, Trade and Investment, Olusegun Aganga, said the move is to address supply gap. 
But analysts say the move is belated because the price of used cars has already risen by as much as 40 percent.
According to them, it is almost impossible to for prices to move in southwards direction once they have gone up.
A release signed by the Director General of the National Automotive Council (NAC), Aminu Jalal, stated that: It means that used vehicles import at 35 percent tariff is extended till December 31st, 2014. The implementation of all other aspects of the Nigeria Automotive Industrial Development Plan (NAIDP) continues unabated; as the policy is not all about tariff on used vehicles alone. Aganga invoked a provision in the circular No. BD/FP/DO/09/1/224 of February 29, 2014 which allows the minister and NAC to extend the waiver of only 35 percent levy on used vehicle imports to manage market condition. The release further read: NAC wishes to confirm that the July 1, 2014 date for full implementation of the Nigerian Automotive Industry Development Plan (NAIDP) remains sacrosanct; and there is no intention whatsoever to suspend or postpone policy implementation. The implementation of NAIDP, as published in the federal government’s official Gazette No. 33 of January, 2014, is still on course.

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