FG suspends new levy on imported vehicles, others

FG suspends new levy on imported vehicles, others

The Federal Government has suspended the new levy imposed on certain imported vehicles.

The Import Adjustment Tax (IAT), which was approved by former President Muhammadu Buhari took effect on June 1, 2023.
Special Adviser to the President on Special Duties, Communication and Strategy, Dele Alake, announced the suspension of the levy on Thursday while speaking with at the presidential villa, Abuja.

Imported vehicles with two litres to 3.9 litres engines were required to pay an IAT equivalent to two per cent of the value of the vehicle while vehicles with four litres engines and above attracted IAT of four percent of their value.
However, vehicles with engines below two litres, mass transit buses, electric vehicles, and locally manufactured vehicles were exempted from the IAT.
In addition to the IAT, the Federal Government also introduced a green tax made up of excise duty on single-use plastics (SUPs), including plastic containers, films and bags, at a rate of 10 per cent.
The green tax has similarly been suspended.

“Further to his commitment to creating a business-friendly environment, the President has ordered the suspension of the newly introduced Green Tax by way of Excise Tax on Single Use Plastics, including plastic containers and bottles. In addition, the President has ordered the suspension of Import Tax Adjustment levy on certain vehicles,” Alake said.

“As a listening leader, the President issued these orders to ameliorate the negative impacts of the tax adjustments on businesses and chokehold on households across affected sectors. His Excellency will not exacerbate the plight of Nigerians.

“In closing, the President wishes to reiterate his commitment to reviewing complaints about multiple taxation, local and anti-business inhibitions.
“Federal government sees business owners, local and foreign investors as critical engines in its focus on achieving higher GDP growth and appreciable reduction in unemployment rate through job creation.”