…the reduction in import duties and levies is targeted at reducing the cost of transportation in the country.
The federal government has concluded plans to reduce the levy being paid on imported cars from 35 percent to five percent.
The import duty of tractors and other motor vehicles for the transportation of goods has been also been slashed from 35 percent to 10 percent.
This is according to the draft bill of the 2020 finance bill to be presented to the national assembly.
The bill becomes law after it is passed by the legislature and assented by President Muhammadu Buhari.
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).
The bill also proposes that software acquisition now qualifies as capital expenditure.
The minister of finance, budget, and national planning, Zainab Ahmed, had previously explained that the reduction in import duties and levies is targeted at reducing the cost of transportation 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.
The comptroller-general of the Nigeria Customs Service, In 2019, Hameed Ali, had in 2019 urged the federal government to reduce the levy paid on imported cars to 10 percent.
Ali, at the time, 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 as a result heightened smuggling.