FG To Slash Levy On Imported Cars From 35% To 5%

The federal government has concluded plans to slash the levy on imported cars from 35% to 5%.

This is contained in the draft bill of the finance bill of 2020, which will be presented to the national assembly.

The bill will become law after it has been passed by the legislature and approved by President Muhammadu Buhari.

The bill in its details as shared by the presidency, shows that the import duty of tractors and motor vehicles for the transportation of goods has been slashed from 35 percent to 10 percent.

The financial 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 minister of finance, budget, and national planning, Zainab Ahmed had earlier explained that the reduction in import duties and levies is targeted to help 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 stated at the end of the federal executive council (FEC) on November 18.