President Goodluck Jonathan in Lagos on Friday said that the Federal Government would soon commence a 10-year tax holiday for local tyre manufacturers.
Jonathan made the declaration at the opening ceremony of the 2013 Lagos International Trade Fair.
Represented by the Minister of Trade and investment, Mr Olusegun Aganga, Jonathan said the tax holiday was part of the commitment of the government to its new automobile policy.
The president said that the value chain on key automobile products like metals, iron ore, plastic, and tyres would also be improved.
“In terms of product development, you need tyres. Michelin and Dunlop died many years ago because of poor government policy. We are bringing them back. The policy for tyre, part of the problem was that some of the tyres were brought in at 10 per cent, while some are 20 per cent and 40 per cent.
“Anybody that goes into tyre production like Michelin and others will start bringing in tyres at 5 per cent based on the level of commitment to produce tyres locally. They will not pay tax for the next five to 10 years. Also to promote the automobile sector, we are making investments in the petrochemical sector. Last month, Mr Aliko Dangote announced an investment of nine billion dollars on a petro-chemical plant. The plant will offer an immediate employment to 8,000 engineers, and then a subsequent 85,000 workers. It is also needful to diversify the economy, despite our plans for the petroleum sector,” he said.
The president also said that adequate measures would be provided to support the annual trade fair and make it bigger to boost the real sector.
He said he had taken necessary legal steps to reverse the full concession of the trade fair complex.