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FG to slash levy on imported cars from 35% to 5%

The federal government of Nigeria has concluded plans to slash the levy to be paid on imported cars from 35 percent to five percent, according to a new bill to be presented to the national assembly.

The bill which will come as a welcome development to Nigerians who have been financially impacted by a 2020 year plagued by the Coronavirus pandemic, is contained in the draft bill of the 2020 finance bill to be presented to the national assembly.

 

Once the bill has been passed by the legislature and signed by President Muhammadu Buhari, it’ll automatically become law.

 

The bill also shows that the import duty of tractors and motor vehicles for the transportation of goods will be slashed from 35 percent to 10 percent while tax relief will be granted to companies that donated to the COVID-19 relief fund under the private sector-led Coalition against COVID-19 (CACOVID).

According to Zainab Ahmed, the Nigerian minister of finance, budget, and national planning, had previously explained that the reduction in import duties and levies is being done to reduce the cost of transportation.

“The reason for us is to reduce the cost of transportation which is a major driver of inflation especially food production,” she told state house correspondents at the end of the federal executive council (FEC) on Wednesday, November 18.

Recall on Wednesday November 18, media aide of Vice President Yemi Osinbajo, Laolu Akande, tweeted on the reduction of import duty.

 

LIB

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