NADDC canvasses tax waiver for local vehicle manufacturers

The National Automotive Design and Development Council, NADDC, has called for tax waiver for local vehicle manufacturers who import raw materials into the country.

The council made the call when its Director General, Otunba Joseph Oluwemimo Osanipin, and the Board Chairman, Chief Emma Eneukwu, led the management and board members on an oversight visit to Innoson Vehicle Manufacturing, IVM, and Kojo Motors plant in Nnewi and Umunya, both in Anambra State.

The team, which inspected the plants of both companies, expressed satisfaction at the level of innovation in the area of clean energy vehicles like the Electric Vehicle (EV) and Compressed Natural Gas (CNG) vehicles.

However, it expressed concerns over complaints of high tariffs for imported raw materials, which pushes up the cost of locally manufactured vehicles, leaving them unable to complete with importers of vehicles who enjoy tax free importation.

Osanipin who spoke to journalists after the inspection, said: “We are here on a facility tour of vehicle assembly and manufacturing plants to see those that manufacture and those that assemble.

“Our aim is also to know those that have the capacity to manufacture and those that assemble and the caliber of vehicles they churn out. We have been round and we are proud of what we have seen on ground, and the level of investment by Innoson Vehicle particularly.

“We have seen how these vehicles are built from scratch and that is why we brought all the members of board, and people who hitherto think he just assembled vehicles. You can see the level of investment here, this place is dedicated to clean energy vehicles, and you can see the electric vehicles and the CNG vehicles, which is in line with the federal government policy of promoting cheaper energy and ensuring that our environment is cleaner.

“We are here to give them the necessary support and we have heard their complaints about high tariffs and how their investments are not protected. We will take the complaints to the right quarters and canvass for zero duty for importation of his raw materials.

“We have seen the various kinds of iron rods Innoson imported and we all know that he paid duties on them and by the time he manufactures his vehicles, the cost of these materials will be added to the vehicles and that will make the price high, and the products will be unable to compete with other imported vehicles.

“Someone will bring fully built vehicles at zero duty and that will affect the patronage of these vehicles. So his complaints are genuine, and we are taking it to the right quarters.”

The chairman of board of the council, Chief Emma Eneukwu, called for heavy taxation on those importing fully built vehicles into the country, saying that this will encourage Nigerians to produce and also make the products cheap enough to compete with foreign products.

He said: “I think government should place full tax on vehicle importation, because they can’t stifle our own and thrive on our patronage. I’m happy with what the president is doing and he is encouraging local manufacturers, especially through his Nigeria First policy, which aims to ensure that we produce what we consume and consume what we produce.”

The council said it is happy with the Nigeria First policy of the Federal Government, stating that just two weeks ago, the SGF signed a memo directed to all MDAs for the patronage of locally manufactured goods.

Chairmen of Innoson Vehicle Manufacturing, IVM, Chief Innocent Chukwuma and Kojo Motors, Chief Ikenna John Oguegbu, led the delegation on a tour of their plants.

Chukwuma, who said IVM is already building a second factory, said he is encouraged to continue on the path of industrialization to ensure that young people are employed.

“It is not about the level of investment, but building something that will last and also keep our youths busy,” he said.

NADDC canvasses tax waiver for local vehicle manufacturers