Skip to main content

Civil Society Group Makes FOIA Request From Finance Minister Over Car Duties And Levies

January 22, 2014

The Chairman of Civil Society Network Against Corruption (CSNAC) has written to the Minister of Finance today making a Freedom of Information request over the purpose of an automative levy.

The Chairman of Civil Society Network Against Corruption (CSNAC) has written to the Minister of Finance today making a Freedom of Information request over the purpose of an automative levy.

googletag.cmd.push(function() { googletag.display('content1'); });

Chairman Olanrewaju Suraju said in his letter to Dr. Ngozi Okonjo-Iweala, Finance Minister in Abuja, an approved National Automative Policy, passed in October 2013, aimed at encouraging local production and assembly of new vehicles, did not include the amount of levy.  

Suraju says, however, in a November news story in The Punch Newspaper a document signed by the Finance Minister, reference BD/FP/DO/09/189, shows the new import tariff on cars was 70 per cent (on the cost of each vehicle).  

A fully built car would attract a duty of 35 per cent, and a levy of another 35 per cent on the cost of the vehicle.  

googletag.cmd.push(function() { googletag.display('content2'); });

It was also revealed that importers/dealers who give 20 per cent and two per cent as duty and levy on new cars would be expected to pay a 48 per cent increase.  

And according to the document similar high tariffs were applicable to imported used cars.

CSNAC Chairman Suraju said in his letter Alhaju Aminu Jalal, Director-General of the National Automative Council had said the levy was supposed to be used for the development of local automative industry by building cars at globally competitive prices.  

He quoted Mr. Yenukume Nobescu, Managing Director of Braveview investments who told TheBusinessDispatch.com on January 1, 2014 "The automative fund when it was introduced was to ease manufacturing of these vehicles in Nigeria to the level that Nigerians can afford to buy news ones."  

Suraju also said news stories inThisDailylive.com, Vanguard and Daily Newswatch showed the NAC levy increase has been projected by stakeholders in the sector to meet the expected hike in prices of imported cars and tires.  They estimate the increase of 60 percent on imported cars, and anticipate the new policy will fuel smuggling activities in the country.  

Suraju said this policy will make it more difficult for the middle class to purchase vehicles let alone the poor and it negates the primary objective of the hike.  

He has requested the following documents in accordance with the Section 2, 3, 4 of the Freedom of Information Act, 2011:

1.            How much NAC levy has accrued in the last ten years (2003-2013),

2.            Audited account of fund utilization as relating to the fund;

3.            Supporting documents in respect of the utilization in 2 above.

The Civil Society Network Against Corruption (CSNAC) is a coalition of over 150 organizations whose aim is to combat corruption and encourage transparency and accountability in government and society.

googletag.cmd.push(function() { googletag.display('comments'); });