The Federal Government has said the implementation of the reduction of import duty on vehicles and tractors from 35% to about 10% may take off next week.
This is part of the provision of the newly signed Finance Act 2020 which was introduced by the federal government as part of the measures to ease the cost of transportation across the country and reduce the impact of the coronavirus pandemic.
According to a report from Punch, this disclosure was made by the Controller General of Nigeria Customs Service, Hameed Ali, during an interaction with journalists on Tuesday, January 26, 2021, in Abuja.
The customs boss said that the management of the service was expecting an official communication from the finance ministry on the matter any moment from now.
What the Controller General of Customs is saying
Ali said that the vehicle tariff reduction, which is part of the 2020 Finance Act, was initiated by the Nigeria Customs Service to ease the cost of transportation in Nigeria.
He said, “We are the proponents of the new tariff. I’ve been torn apart by many people criticising it, saying I used my connection to get it done. But it is in the overall interest of Nigeria.
“Now, it has become a law. We are now waiting for the finance minister to give us a formal conveyance of that Act. Once we receive it, we commence implementation immediately and inform our commands. We are hoping that latest by next week, it will become operational.”
What you should know
- It can be recalled as part of its bid to introduce tax incentives in the face of economic downturn, the Federal Government in November 2020, proposed a bill to slash import duties for tractors, buses and other motor vehicles and others from 35% to 10% and 0% to further help cushion the socio-economic conditions in the country.
- The Minister for Finance, Budget and National Planning, Zainab Ahmed, had explained that the need to reduce food inflation figures through one of the causative factors of high production cost, which is transportation, inspired the bill.
