Drastic increase in the cost of Tokunbo cars from January 1, 2015

 If you want to buy a used car popularly called tokunbo you better buy it today.... because Federal Government begins the collection of 70 per cent duty on second-hand vehicles imported into the country from January 1, 2015 which will inflate the prices of the cars. This is the second phase of the national automotive policy, which was announced in November 2013.


In a move to encourage local assembling of vehicles, the government had last year raised the import tariff on fully-built cars and used vehicles from 22 per cent to 70 per cent. The first phase of the policy involving the payment of 35 per cent duty came into effect in February 2014. The second phase of the policy involving another 35 per cent increase of the levy, expected to take effect on July 1, 2014, was later postponed to January 1, 2015 after consultations with stakeholders.

Following the first 35 per cent duty increase on imported used cars, auto dealers at the Berger Yard Auto Market along the Apapa/Oshodi Expressway in Lagos reportedly reduced the number of imports by half due to a corresponding rise in the cost of imports. Dealers, who spoke with our correspondent, said sales had been badly hit as a result of the implementation of the first phase of the policy.






Source: trendysturvsblog.com