The Federal Government has finalised plans to cut the levy to be paid on imported vehicles from 35 percent to five percent, according to a new bill to be submitted to the national assembly.
The bill will be loved by Nigerians that have been financially impacted by this year’s Coronavirus pandemic and it is contained in the draft bill of the 2020 finance bill that will be presented to the national assembly.
When the bill is passed by the legislature and signed by President Muhammadu Buhari, it’ will become law.
Also, the bill shows that the import duty of tractors and motor vehicles for transporting goods will be reduced from 35 percent to 10 percent while tax relief will be availed to companies that contributed to the COVID-19 relief fund under the private sector-led Coalition against COVID-19 (CACOVID).
While talking to State House correspondents about the slash in import duties, Minister of Finance, Budget, and National Planning, Zainab Ahmed 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.”
It should be recalled that the media aide of Vice President Yemi Osinbajo, Laolu Akande, tweeted on the reduction of import duty recently.
His tweet read: “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.”
