Licensed Customs Agents have projected a 15% increase in car importation following President Bola Tinubu’s decision to remove the Import Adjustment Tax.
The founder of the National Council of Managing Directors of Licensed Customs Agents, Mr. Lucky Aniwero, stated that the removal of the tax would likely lead to a boost in car imports, although the impact may be tempered by the fluctuating exchange rate.
Aniwero explained that the exchange rate has been affected. So, the boost in car importation won’t be much. We are looking at between a 10% to 15% boost because the exchange rate would actually reduce importation.
He further highlighted that the removal of the tax would increase the movement of vehicles into the country, particularly for vehicles with 2,000 cubic capacities upwards. The measure is expected to stabilize the system and enhance the importation of vehicles, which is crucial for Nigeria’s transportation needs.
The Acting National President of the Association of Nigerian Licensed Customs Agents, Mr. Kayode Farinto, commended the president for the removal of the vehicle tax and called on the government to also review the 7% port development levy.
Farinto emphasized the importance of introducing palliatives to alleviate the challenges caused by forex difficulties, and he expressed hope that the government would take steps to alleviate the suffering of the people.
He also noted that market forces now determine foreign exchange rates, indicating a shift away from fixed rates.
