import duty on cars | Business Post Nigeria

By Adedapo Adesanya The federal government is planning to slash levy imposed on imported cars from 35 per cent to five per cent, a report by The Cable Newspaper said. The news platform stated that this development was contained in the draft bill of the 2020 finance bill to be presented to the National Assembly by the executive arm of government. It was noted that the details of the bill shared by the presidency also plans to reduce the import duty on tractors and motor vehicles for the transportation of goods from 35 per cent to 10 per cent. The bill will also grant 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 doing business, the bill also proposes that software acquisition now qualifies as capital expenditure. This follows the statement made by the Minister of Finance, Budget, and National Planning, Mrs Zainab Ahmed, at the last federal executive council (FEC) meeting held on Wednesday, November 18. She explained that the reduction in import duties and levies is targeted at reducing 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 said after the meeting held in Abuja with President Muhammadu Buhari presiding. In 2019, Mr Hameed Ali, the Comptroller-General of the Nigeria Customs Service (NCS), had urged the federal government to reduce the levy paid on imported cars to 10 per cent. Mr Ali argued that the levy, which is paid in addition to the 35 per cent import duty, has discouraged importers; causing them to divert their importation to neighbouring countries and heightened smuggling. The policy was introduced in the first place to grow the local automobile industry but this has not been achieved as even public officials spend public funds to buy cars from other countries despite having a local manufacturer.

FIRS Blames #EndSARS, Others for 2020 Revenue Target Shortfall

Tag: import duty on cars

Recent Posts