Government Extends Ban On Old Cars To 15 Yrs
San Francisco, Nov 29, (THEWILL) – The Minister of Finance, Dr Olusegun Aganga today announced government’s economic blue print going forward which included extending the age of banned used motor vehicles’ importation from 10 years to 15 years from year of manufacture.
Government also removed certain items from the existing import prohibition list.
The Minister of Finance who made the revelation at a press briefing in Abuja also stated that the Ministry has “conducted a review of the existing Import Prohibition List and Tariff Structure in line with best practices to review the impact of the prohibitions on the Government’s revenue and local industry on an on-going basis. The NEMT held extensive consultations with key stakeholders and found that import bans are ineffective and result in a huge revenue loss to Government through significant trade diversion to neighbouring countries and the routine smuggling of banned goods into the country. In addition, the items on the Prohibition List cost more than what obtain in neighbouring countries due to the smuggling activities.
“It is expected that these trends are likely to continue; therefore we have received Presidential approval to replace the bans with tariffs to protect domestic industries with regards to the following items:i. Cassava: A 15% levy in addition to the substantive 20% duty;ii. Toothpick: A 20% levy and duty of 20%;iii. Furniture: A 20% levy and duty of 20%;iv. Textile Fabrics & Articles (Lace Fabric, Brocade, Voile, African Print etc. and Made-up Garments): A 20% levy and duty of 20%; and vi. Waters & Beverages (excluded items like health & energy drinks only): A 10% levy and duty of 10%,” the Minister added.
Aganga said: “A percentage of revenue from the new tariffs will be set aside for the Bank of Industry (BOI) with the exception of income from textiles where the proceeds from the levy will be used to support the domestic textile industry.”
The full text of the address by the Finance Minister will be published later today in the THEWILL business page.