The federal government has concluded plans to slash the levy to be paid on imported cars from 35 percent to five percent.

This is contained in 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.

Details of the bill shared by the presidency also show that the import duty of tractors and motor vehicles for the transportation of goods has been slashed from 35 percent to 10 percent.

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).

To improve ease of doing business, the bill also proposes that software acquisition now qualifies as capital expenditure.

Zainab Ahmed, the minister of finance, budget, and national planning, had previously 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 told state house correspondents at the end of the federal executive council (FEC) on Wednesday, November 18.

In 2019, Hameed Ali, the comptroller-general of the Nigeria Customs Service had urged the federal government to reduce the levy paid on imported cars to 10 percent.

At the time, Ali 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 and heightened smuggling.

Yenefer:
Sai Baba. Buhari havr to rebuild Nigeria all over again after years of PDP destruction.
Innoson motors? Who cares. We don't

Rugaria:
That will bring more revenue to Nigerias government because it will kill the car importation business through cotonou. But at the same time, it may mark the end of our growing automobile industry. Thelikes of innoson should worry. Government has chosen more money over greater technology transfers here. Obviously, the government is really cash strapped. Benin republic rakes in billions from Nigerians through the many cars going towards Nigeria that are cleared at her ports every year. It may also improve the quality and models of cars driven in Nigeria. You will be surprised that in relative terms, folks in cotonou drive more recent models of cars than Nigeria. Nigerians have to drive older models because importers pay lesser duties on those, thereby standing a better chance of making more profits...

SavageMaster:


I heard Innoson is expanding to some African countries. I hope it works out for him so it will cushion the effect of this new government decision. Really troubling times.

Acjohn:
An evidence that Buhari government is confused. Policy instability is one of the things that drives away investors. It was supposed to be time for Igbo man like innoson but because hr is not a northerner, let the policy be changed to disfavor him. What happened to the automotive policy of Nigeria?

As I dey like this now, I don't know where we are headed economically, NNPC have changed from oil producer to oil importer. Resources in the north is for the people that in the south is for the government, Ipob are terrorist while Fulani herdsmen and BH are misunderstood people that government needs to negotiate with.

I won't be surprised if its a northerner that was given a contract and had to lobby for this to be lifted so that he can make good gains, after that government will reverse the policy again.

God help us from this circular motion.

omenka:
Na wa ooooo!!!

We complain everyday about how difficult it is doing business due to the burden of tax, duties and levies imposed by the government. Now they say they wanna slash levy and someone thinks IT IS TARGETED AT INNOSON.

Isn't this a normal economic incentive deployed by governments around the world to help boost commerce and stimulate the economy? Why do we always have to bring everything down to tribe and religion in this country?

How do you people's minds work exactly. Gosh!

Simplyleo:
As usual, we are always the target.

They want to kill IVM.

Increase import duties: The govt is insensitive to the plight of the masses.

Decrease import duties: the govt want to kill IVM.

Very funny pipu.

Acjohn:
An evidence that Buhari government is confused. Policy instability is one of the things that drives away investors. It was supposed to be time for Igbo man like innoson but because hr is not a northerner, let the policy be changed to disfavor him. What happened to the automotive policy of Nigeria?

As I dey like this now, I don't know where we are headed economically, NNPC have changed from oil producer to oil importer. Resources in the north is for the people that in the south is for the government, Ipob are terrorist while Fulani herdsmen and BH are misunderstood people that government needs to negotiate with.

I won't be surprised if its a northerner that was given a contract and had to lobby for this to be lifted so that he can make good gains, after that government will reverse the policy again.

God help us from this circular motion.

Rugaria:
That will bring more revenue to Nigerias government because it will kill the car importation business through cotonou. But at the same time, it may mark the end of our growing automobile industry. The likes of innoson should worry. Government has chosen more money over greater technology transfers here. Obviously, the government is really cash strapped. Benin republic rakes in billions from Nigerians through the many cars going towards Nigeria that are cleared at her ports every year. It may also improve the quality and models of cars driven in Nigeria. You will be surprised that in relative terms, folks in cotonou drive more recent models of cars than Nigerians. Nigerians have to drive older models because importers pay lesser duties on those, thereby standing a better chance of making more profits... Problem is that the accrued revenue will ultimately disappear into private hands or end up being used to biuld up Niger republic..

leokid866:

but you do know the federal government is innoson biggest client.....he should be more worried if they decided to cancel or reduce his contracts.

tsdarkside:


abegi park....!!

how many of you igbos actualy bought innoson cars....??

people dont want made in nigeria....their is nothing you can do about that fact....
you cant force me to buy cassava when i prefer basmati rice from india....

its my money....
what nigeria can still do is providin things that people prefer and not forcin them to what you have....

if nigerians prefer ferraris,then nigeria have to try to build something like ferraris or even better....

Rugaria:

I don't like made in Nigeria rice. Lots of bones. So why am I being forced to eat that with the closure of the borders? How can you support the ban on imported rice, a staple food eaten by Nigerians daily but become happy with the liberalisation of car imports?like What changed!?I The problem with you guys is that you all start off by projecting your rabid tribalism on others. The only good thing in this policy is that Abuja politicians will have more money to spend. Otherwise any critical mind will know that this policy automatically makes Nigeria the dumping ground of used cars in the world. You are going to buys cars. Many cars. But it's still tokumbos used elsewhere. Capital flight with streets and highway littered with broken down caterpillars and lorries. Why bother explaining to you guys? You will always see it from your normal tortured lenses..

inoki247:
Good enough of buying car from yankee for 500usd and paying 450k to 500k as duty to clear a shitty car dat u want to be managing..

tsdarkside:


nigeria has good car mechanics....
profit is still their....

look,am sad to say this....
but not everybody can afford a innoson....

inoki247:


is just like cause America Made Ford pr Chevy dey should frustrate other brand with alot of duty just to patronize d brand is Mata of choice

tsdarkside:


its a Mata of choice....

Yenefer:
Sai Baba. Buhari havr to rebuild Nigeria all over again after years of PDP destruction.
Innoson motors? Who cares. We don't

ethicallyright:
The over hyped car assembler, loan defaulter and tax fraud disguising as an automobile manufacturer needs to begin an overhaul in his moving coffins packaging company.

---

He may begin by employing a brain filled cone head individual and intelligent innovator like myself to champion electric cars production which is clearly the future.
He should also stop dashing Big Brother Naija's women of easy virtue vehicles they keep as furniture at home and instead drive the Mercedes their "fans " gift them and invest more in Corporate Social Responsibilities like sponsoring brilliant minds to Universities in Europe , China and North America to aid technology transfer that will help his firm grow.