The federal government of Nigeria has concluded plans to slash the levy to be paid on imported cars from 35 percent to 5 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.
Details of the bill shared by the presidency also show that the import duty of tractors and motor vehicles for the transportation of goods has been slashed from 35 percent to 10 percent.
The bill also grants tax relief to companies that donated to the COVID-19 relief fund under the private sector-led Coalition against COVID-19 (CACOVID).
To improve ease of transacting businesses, the bill also proposes that software acquisition now qualifies as capital expenditure.
Zainab Ahmed, the minister of finance, budget, and national planning, had previously explained that the reduction in import duties and levies is targeted at reducing the cost of transportation.
Recall on Wednesday November 18, media aide of Vice President Yemi Osinbajo, Laolu Akande, tweeted on the reduction of import duty.
“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.
“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.
In 2019, Col. Hameed Ibrahim Ali (Rtd), the comptroller-general of the Nigeria Customs Service had urged the federal government to reduce the levy paid on imported cars to 10 percent.
At the time, Ali argued that the levy, which is paid in addition to the 35 percent import duty, has discouraged importers; causing them to divert their importation to neighbouring countries and heightened smuggling.
The federal government has revealed plans to slash the 35 per cent levy paid on imported cars to 5 per cent.
The federal government of Nigeria has concluded plans to slash the levy to be paid on imported cars from 35 percent to 5 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.
Details of the bill shared by the presidency also show that the import duty of tractors and motor vehicles for the transportation of goods has been slashed from 35 percent to 10 percent.
The bill also grants tax relief to companies that donated to the COVID-19 relief fund under the private sector-led Coalition against COVID-19 (CACOVID).
To improve ease of transacting businesses, the bill also proposes that software acquisition now qualifies as capital expenditure.
Zainab Ahmed, the minister of finance, budget, and national planning, had previously explained that the reduction in import duties and levies is targeted at reducing the cost of transportation.
Recall on Wednesday November 18, media aide of Vice President Yemi Osinbajo, Laolu Akande, tweeted on the reduction of import duty.
“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.
“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.
In 2019, Col. Hameed Ibrahim Ali (Rtd), the comptroller-general of the Nigeria Customs Service had urged the federal government to reduce the levy paid on imported cars to 10 percent.
At the time, Ali argued that the levy, which is paid in addition to the 35 percent import duty, has discouraged importers; causing them to divert their importation to neighbouring countries and heightened smuggling.