New Auto Policy has started, it won't cause price increase says Minister

The Minister of Industry, Trade and Investment, Mr Olusegun Aganga has cleared the air on the wide spread rumour that prices of imported cars will rise due to the New Auto Policy which took effect on July 1.

Briefing newsmen after the weekly FEC Meeting in Abuja, the Minister assured that the new policy will pay better for our economy.

Read his words:

“I briefed council today on a misleading article in one of the newspapers on Tuesday on the auto policy and we thought it necessary to communicate and correct it. 

"The article has claimed that the duty on used cars is now 70 per cent from yesterday, (Tuesday). 

"That is incorrect. It is 35 per cent. It has also claimed that all used cars coming into the country will attract a duty of 70 per cent. That again is incorrect.

“Those in the car assembly programme will be able to import cars to meet the gap, when you look at production and the demand in the country. 

"They will be able to import those cars at 35 per cent, not 70 per cent. It is only for those who are putting a strain on our foreign reserves, who have no intention of creating jobs in the country, who want to continue to remain traders, that the 70 per cent duty applies to.

"This is to discourage trading, to encourage local assembly, job creation and unnecessary pressure on our foreign reserves. So, it’s an economic issue and deliberately so.”