Plans have been concluded by the federal government to slash the levy to be paid on imported cars from 35 percent to five percent.
The development is contained in the draft bill of the 2020 finance bill, which would be presented to the national assembly.
If the bill is passed, it becomes law after it is assented by President Muhammadu Buhari.
Climaxtrend urther learnt that the import duty of tractors and motor vehicles for the transportation of goods would now be 10 percent, as it has been slashed from 35 percent.
Companies that donated to the COVID-19 relief fund under the private sector-led Coalition against COVID-19 (CACOVID), were also granted tax relief in the new bill.
Also, in other to improve the 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.