Federal Government has concluded plans to slash the levy to be paid on imported cars from 35 per cent to five per cent.
This is stated in the draft bill of the 2020 Finance Bill to be presented to the national assembly.
The bill, which was recently approved by the Federal Executive Council, will become law after it is passed by the legislature and assented by President Muhammadu Buhari.
It also shows that the import duty of tractors and motor vehicles for the transportation of goods will be slashed from 35 per cent to 10 per cent 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, minister of finance, budget, and national planning, the reduction in import duties and levies is being done to reduce the cost of transportation.
Speaking with state house correspondents earlier on Wednesday, November 18, Zainab expressed;
The reason for us is to reduce the cost of transportation which is a major driver of inflation especially food production.
Also on Wednesday November 18, media aide of Vice President Yemi Osinbajo, Laolu Akande, tweeted on the reduction of import duty.
He wrote;
To further cushion current socio-economic conditions, Buhari adm is proposing more tax incentives in the 2020 Finance Bill including import duty reductions from 35 to 10% & 0% levies on tractors, transport vehicles & co, 50% reduction of minimum tax, specific TETFUND exemption…
— Laolu Akande (@akandeoj) November 18, 2020
…there would also be tax relief for contributions to the COVID-19 Relief Fund, while retirees’ compensation exemption threshold is to be raised from N10,000 to N10m & software acquisition would now qualify as capital expenditure allowing for tax recovery of same. Expect more.
— Laolu Akande (@akandeoj) November 18, 2020
The bill could be read to the national assembly this week.
