House Committee Okays Tariff Increase On Imported Cars

The new automotive policy of the Federal Government, which seeks to increase the tariff on imported cars, has been endorsed by the House of Representatives Committee on Industry. According to PUNCH Newspaper reports, this is in furtherance of the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga automobile industry plan to save as much as N550bn.

 The implementation of the policy would attract new

investments to the sector, protect local automotive manufacturers and create employment, Mr. Mohammed Onawo  the Chairman, House Committee on Industry, said.

The Chairman, in a statement made available to newsmen on Thursday in Abuja by the Federal Ministry of Industry, Trade and Investment, said increasing the tariff on imported cars would encourage the businesses of local manufacturers.

“The House Committee on Industry is very insistent on the fact that anybody who is going to import a complete car is going to pay a higher tariff than somebody who is going to manufacture here because that is the only way that you will be able to protect who is going to create employment here,” he was quoted as saying. He added, “Of particular interest to me is how to use tariff to protect local manufacturers. One of the major challenges facing those that are manufacturing cars in Nigeria is the tariff structure.

“If somebody who is importing a complete car is paying less than somebody who is manufacturing, then you are not encouraging the person who is manufacturing. With the new measures being put in place by the ministry, I am sure it will protect those investors who are willing to come to Nigeria and invest by assembling or manufacturing vehicles here.”