High Import Duties On Used Vehicles Forcing Importers To Bring In Accidented Vehicles Into Nigeria – Report

High import duties on used vehicles forcing importers to bring in accidented vehicles into Nigeria – Report.

Dr Kayode Farinto, a licensed Customs agent and the immediate acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), has blamed the surge of import of accidented (or damaged) vehicles into the country on the high import duties on used and new vehicles.

Speaking to newsmen, Farinto called for a review of the 50 percent levy on Tokunbo (used) vehicles, which was introduced to discourage used vehicle imports and promote new ones.

“If you look at the current situation at some port terminals, we see a high influx of ‘accidented’ vehicles. This is so because the government policy on revenue collection for vehicles is too harsh,” he said.

“If the duty for a new vehicle is $4,000, because it’s accidented, they’ll give you a rebate and say go and pay $2,000. So the owner goes and pays $2,000 and goes to repair the vehicle,” Dr. Farinto said.

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Speaking on the safety risks posed by the use of accidented (damaged) vehicles on Nigerian roads, he said :

“Out of all the 100 per cent accidents on the road, 35 per cent is contributed as a result of accidented vehicles. Most of the accidented vehicles have had their chassis affected.”

“When an accidented vehicle is moving on the road, the moment that vehicle is on the speed limit of 100, it starts vibrating, and it can cause commotion, particularly for commercial vehicles,” he explained.

He urged the Federal Government to reconsider duty rates on used vehicles to reduce the surge of imports of accidented vehicles by importers.

“Government should review that 50 per cent levy. Whoever is telling you that a used vehicle does not have value is wrong. Legal notices give room for what is called wear and tear. By the year of manufacture, it starts progressing by 10 per cent devaluation; that is wear and tear,” he said.

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