Government plans to slash import duties on vehicles in its bid to cushion the socio-economic condition of citizens.
The disclosure was made during the week by Laolu Akande, Senior Special Assistant, Media and Publicity to Vice President Yemi Osinbajo.
According to Akande, the move which is aimed at more tax incentives in 2020 will see reduction of duties from 30% to 10% and 0% on tractors while transport vehicles will attract a 50% tax reduction.
The development is also contained in the daft bill of the 2020 finance bill to be presented to the national assembly.
If passed and assented to by President Muhammadu Buhari, it becomes law.
Minister of Finance, Budget and National Planning, Zainab Ahmed had earlier explained that the aim of reducing the import duties is to reduce the cost of transportation.
She spoke to newsmen at the end of the Federal Executive Council (FEC) meeting on Wednesday.
According to her, “the reason for us is to reduce the cost of transportation which is a major driver of inflation especially food production.”
Meanwhile, Peugeot Automobie Nigeria Limited (PAN) cautions that the move will be a disincentive to local vehicle manufacturers.
The Chairman, Ahmed Aliyu Wadada called on the Federal Government to reverse the plan considering all the measures taken by the Buhari administration to revive the steel and petrochemical industries.
Both industries which serve the automobile sector will suffer setbacks if the slash on vehicle import duties is allowed to be assented to by the government.
According to Wadada, “The Federal Government should take a look at the policy and reverse it for the betterment of Nigerians.
“Such policy somersault is injurious to the survival and development of the automobile industry.
“Instead of creating employment opportunities, it would create unemployment problems du to lowering of activities by automobile plants.”
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