President Bola Ahmed Tinubu has ordered the suspension of the Import Tax Adjustment levy on specific vehicles.
POLITICS NIGERIA reports that the announcement was made by Dele Alake, Special Adviser to the President, during a press conference with State House Correspondents.
This decision is part of four Executive Orders signed by the President, aimed at reducing the burden of multiple taxation and creating a more favourable environment for local and foreign businesses.
Recall that the Federal Government had expressed its intention to impose Import Adjustment Tax (IAT) on motor vehicles as part of green emission development in Nigeria.
In reaction, the Manufacturers Association of Nigeria (MAN) has called for caution, stating that Nigeria is not yet ready for electric vehicles due to logistical and financial constraints faced by small and medium-scale enterprises.
Former President Muhammadu Buhari had approved the implementation of the Importation Assessment Tax (IAT), which came into effect on June 1, 2023.
Under this policy, imported vehicles equipped with engines ranging from 2 to 3.9 litres were obligated to pay an IAT equal to two percent of the vehicle’s value. On the other hand, vehicles with engines measuring 4 litres or more incurred an IAT of four percent based on their value.
Notably, vehicles with engines below 2 litres, mass transit buses, electric vehicles, and locally manufactured vehicles were excluded from the IAT requirement.
