PAN laments negative impact of levy reduction on imported vehicles

The revision of the import levy on cars from 30 per cent to five per cent by the federal government has taken a toll on the business plan of the Peugeot Automobile Nigeria (PAN).

This was disclosed by the Chairman of the PAN, Hon. Aliyu Ahmed Wadada, in an interview with THISDAY last weekend in Lafia.

Wadada explained that the PAN had a fantastic business plan that was negatively hit by the government’s policy on importation of cars.

He said: “The policy is the reduction of levy on imported vehicles by government from 35 per cent to five per cent, which is a disincentive to the local assembly plants.

“Before that, the policy that was in place was that 40 per cent duty and 30% levy. When you put the two together you will have 70 per cent, which is very high. The essence of making it that high is to discourage importation so as to encourage the local assembly plants to thrive.”

The chairman of the PAN stated that reduction only helped to open the corridors for the importation fully built automobiles at the expense of locally assembled cars.

“Ironically, government is so desirous and committed to providing employment to the citizens of this country. But how do you provide employment by diminishing the fortunes of your real sector that is manufacturing?

“Again, we are seeing and feeling the impact of the Naira’s depreciation at the foreign exchange market as a result of the continuous depletion of Nigeria’s foreign reserve due to our reliance on importation nation,” he said.

Wadada, however, disclosed that the PAN has started to diversify its products offering by not relying solely on the sale of Peugeot products.

He said: “Highest by the end of July this year, all things being equal, we shall be launching another brand called Cherry. This is to make vehicles available to average Nigeria employee either in the public or private sector so that owning a car would not be a luxury but a necessity.”