FOR Motor dealers under the aegis of the Association of Motor Dealers of Nigeria (AMDON), it is not yet celebration time following the slashing of Customs duty on imported vehicles by the Federal Government.

This is because the four percent Green Tax surcharge introduction, which took effect on July 1, has not made it clear if the move is favourable.

According to the National President of AMDON, Mr. Ajibola Adedoyin until the two percent Green Tax surcharge on vehicles with engine capacities between 2,000cc and 3,999cc; and four percent Green Tax surcharge on vehicles with engines of 4,000cc and above (like large SUVs and luxury vehicles) becomes clearer in Naira and kobo, it is not yet time to celebrate over the slashing of Customs duty by the Federal Government.

He spoke to the Nigerian Tribune on Thursday, in Lagos.

Adedoyin said: “We are happy that the Federal Government has approved the slashing of Customs duty on imported vehicles, both new and fairly used.

“However, it is difficult to start celebrating the Customs duty slash following the commencement of the Green Tax surcharge because we still don’t know how it adds up when compared to the introduction of the Green Tax surcharge.

“Why the situation is more worrisome is because the Customs duty slash is coming almost simultaneously after the Green Tax surcharge introduction. It is still looking more like a situation where government is giving with one hand and collecting with the other hand.

“But why many vehicle importers are keeping their arms crossed is because we still don’t know how the duty slash fares when the Green Tax is imputed into the system.

The AMDOS president added: “Yes, the Green Tax has commenced on Wednesday, but the arithmetic of the gain or loss when we add the Customs duty that has been slashed is not yet clear to many of us.

“It is still early days for us to know if the 2 percent or 4 percent of the Green Tax outweighs the 10 percent slash of Customs duty on fairly used vehicles, which many of us bring in at the ports.

“50, while we commend the Federal Government for slashing in half Customs duty on imported vehicles, we will like to wait and watch what that gain translates into after the four percent Green Tax surcharge has been imputed and calculated by the Nigeria Customs Service (NCS).”

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