FG Set To Slash Levy On Imported Cars From 35% To 5%

Finance Minister, Zainab Ahmed
The Federal Government of Nigeria has concluded its plans which is set on slashing the levy paid on imported cars from 35 per cent to 5 per cent, according to a new bill presented to the national assembly. Zainab Ahmed on Imposed Levy on imported Cars

The bill will be welcomed as a welcome development to Nigerians who have been severely hit financially by the impacted of the Coronavirus pandemic, this contained in the draft bill of 2020 finance bill set to be present to the national assembly.

The bill will also slash the import duty on tractors and motor vehicles for the transportation of goods from 35 per cent to 10 per cent while a tax relief will be granted to companies that donated to the COVID-19 relief fund under the guise of the private sector-led Coalition against COVID-19 {CACOVID}.Zainab Ahmed

The Minister of Finance, Budget and National Planning Haija Zainab Ahmed explained that reduction in import duties and levies will help to reduce the cost of transportation and in the long run have a significant effect on reducing the level of Inflation in the country.

“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 on imported cars.

“President Muhammadu Buhari’s administration 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.
“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 N10million & software acquisition would now qualify as capital expenditure allowing for tax recovery of same. Expect more.”

The bill could be read to the national assembly this week.

Finance Minister, Zainab AhmedPhoto Credit: Getty

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