NAC: Why we shifted implementation of 35% levy on used vehicles

Director General of the National Automotive Council (NAC), Aminu Jalal has said that delayed implementation of the 35 per cent levy on imported used vehicles was to enable local assembly plants more time to roll out their products so as not to create gap between demand and supply.

Speaking when he visited Nigerian Shippers’ Council (NSC) in Lagos on Friday, Jalal said, “We all know that three quarter of the vehicle import is used vehicle, so government did not want to raise the levy on used vehicles before the assembly plants produce more vehicles and the financing scheme is in place. That is why the minister was given approval to delay it until we meet certain conditions. That is why the full levy is not charged on used vehicles.”

Jalal sought collaboration between NAC and NSC in developing a portal that will house and sore the Vehicle Inspection Number (VIN) of all imported vehicles and those produced in Nigeria.

He said the Council would also partner other government agencies including the Nigeria Customs Service, Nigerian Ports Authority and the Nigeria Police Force, among others to enable exchange of information between the agencies.

“Logistics is very important in the auto industry and the Shippers’ Council is very prominent in terms of logistics of shipping so from the beginning, we have had Shippers’ Council as a member and we have very useful recommendations from them which we have been implementing.

“We have come to say thank you and to get your cooperation as we are building a portal that will house VIN numbers of all the vehicles imported and also produced in Nigeria.

“By the time an importer pays the customs duty, it will be recorded against that particular car. By the time you register it, the name of the owner and the registration number will be included and if you sell it to somebody, it will be changed so that once you pick that VIN number and you go to the website, you are going to have complete data on the vehicle including when it was produced,” he said.

In his response, Executive Secretary of NSC, Hassan Bello assured that the NSC would give necessary support NAC required in creating the portal by ensuring that shippers include the VIN number in their bill of lading.

He said, “The VIN number is an information that should be contained in the bill of lading that will reveal the year of manufacture of a vehicle and it is the obligation of the shipper to put that in the bill of lading and we are trying to see that this is restored for purpose for which you are creating the portal.

“It is through information you will know if a policy is working or not. We are aware of the power of information and we are glad that NAC is also going towards that direction. We are going to collaborate with you.”

Copyright Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to as the source.