DEJI ALABI
The Lagos Chamber of Commerce and Industry (LCCI) over the weekend commended the Federal Government’s decision to review the Automotive Policy to achieve the desired outcomes.
LCCI Director-General, Mr Muda Yusuf, in a statement in Lagos noted that the policy had missed the expected results
“It has adversely impacted the cost of doing business, welfare of the people, government revenue and the capacity of the economy to create jobs.
“The policy has also penalised stakeholders in the sector that are compliant with extant rules, taxes and tariffs applicable to the automobile sector.
“The cost of vehicles has risen beyond the reach of most citizens and corporate bodies; the impact has been largely negative with far reaching consequences,” he said.
Insidebusinessonline reports that the auto policy is an import substitution industrialisation strategy to reduce importation of vehicles and incentivise domestic vehicle assembly.
It has an import levy of 50 per cent on new cars and 25 per cent on used vehicles, asides the import duty of 20 per cent on new cars and 10 per cent on used vehicles.
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