Tokunbo cars to cost more from January 1

Prices of imported used cars are expected to rise appreciably in the New Year as the Federal Government begins the collection of 70 per cent duty on second-hand vehicles imported into the country from January 1, 2015.

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.