The Federal Government has announced a significant reduction in import levy rates on vehicles, a move aimed at lowering the cost of vehicle importation and improving access to automobiles across the country.
Under the new policy, the import levy on new vehicles has been reduced from 20% to 10%, while the levy on used vehicles (popularly known as Tokunbo vehicles) has been cut from 15% to 5%.
The revised levy rates take effect immediately, according to the announcement.
The decision is expected to ease the financial burden on vehicle importers, dealerships, and consumers, as the government seeks to make vehicle imports more affordable amid rising transportation costs and economic challenges.
Industry stakeholders believe the reduction could lead to lower vehicle prices if importers pass on the savings to buyers. However, the actual impact on market prices will also depend on other factors such as exchange rates, customs duties, shipping costs, port charges, and overall economic conditions.
More details on the implementation guidelines and the duration of the policy are expected to be released by the relevant government authorities.
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