The Bola Ahmed Tinubu-led Federal Government has instructed the suspension of the Import Tax Adjustment levy on certain vehicles.
This was announced by the Presidential spokesman, Dele Alake during a State House reporters briefing on Thursday in Abuja.
According to Alake, the president gave the order to address business unfriendly fiscal policy measures and multiplicity of taxes.
“The suspension of the extra levies on some imported vehicles is part of the presidential interventions to address key concerns of manufacturers and other stakeholders regarding some recent tax changes,â€
Alake said Tinubu issued these orders to ameliorate the negative impacts of the tax adjustments on businesses and chokehold on households across affected sectors, stating that the president will not exacerbate the plight of Nigerians.
“The President wishes to reiterate his commitment to reviewing complaints about multiple taxation, local and anti-business inhibitions. The Federal government sees business owners, local and foreign investors as critical engines in its focus on achieving higher GDP growth and an appreciable reduction in the unemployment rate through job creation.
“The government will, therefore, continue to give requisite stimulus by way of friendly policies to allow businesses to flourish in the country.â€
However, under the new tax regime, imported vehicles with 2000cc (2 litres) to 3999cc (3.9 litres) engines will pay an additional charge known as Import Adjustment Tax (IAT) of 2 percent of the value of the vehicle while vehicles with 4000cc (4 litres) and above engines will attract IAT of 4 percent of their value.
The new levy is in addition to the 35 percent import duty and 35 percent levy being paid by vehicle importers.
Similarly, President Tinubu has also suspended the 5% telecoms tax, deferring Finance Act.