FG set to slash levy on imported cars from 35% to 5%

FG set to slash levy on imported cars from 35% to 5%

<p class="">The Federal Government is ready to slash the levy to be paid on imported cars from 35 per cent to five per cent.</p>

<h1>This is stated in the draft bill of the 2020 Finance Bill to be presented to the national assembly.</h1>

<p class="">The bill which was recently <a href="https://www.pulse.ng/news/local/fec-approves-finance-bill-2020-to-support-2021-budget/1e8986r" id="fb27e60b-ffd5-45e5-8dbb-74acda8a2394">approved by the Federal Executive Council</a> will become law after it is passed by the legislature and assented by <strong>President Muhammadu Buhari</strong>.</p>

<p class="">It is stated in the bill that the import duty of tractors and motor vehicles for the transportation of goods has been slashed from 35 percent to 10 percent.</p>

<p class="">Companies that donated to the COVID-19 relief fund under the private sector-led Coalition against COVID-19 (CACOVID) are granted tax relief in then bill.</p>

<p class="">Also, in order to improve ease of doing business in the country, the bill proposes that software acquisition now qualifies as capital expenditure.</p>

<p class="">On Wednesday, November 18, 2020, the Minister of Finance, Budget, and National Planning, <strong>Zainab Ahmed</strong>, had said that the reduction in import duties and levies was meant to reduce cost of transportation.</p>

<p class="">She said, <em>“The reason for us is to reduce the cost of transportation which is a major driver of inflation especially food production.</em>” </p>

<p class="">The minister said this while addressing state house correspondents at the end of the Federal Executive Council (FEC) on Wednesday. </p>

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