By Uzor Odigbo
Indications are rife that the Federal Government of Nigeria has concluded plans to slash the levy on imported cars from 35 percent to five percent.
This is contained in 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 incapacitated by the COVID-19 pandemic, is contained in the draft of the 2020 Finance bill.
Once the bill is 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).
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) meeting last week.