The Federal Government has suspended the import adjustment tax (IAT) imposed on certain vehicles.
Dele Alake, special adviser to the president on special duties, communication and strategy, announced the development to journalists on Thursday at the presidential villa, Abuja.
The IAT which was approved by former President Muhammadu Buhari took effect on June 1,2023.
Imported vehicles with 2 litres to 3.9 litres engines were required to pay an IAT equivalent to two percent of the value of the vehicle while vehicles with 4 litres engines and above attract IAT of 4 percent of their value.
However, vehicles with engines below 2 litres, mass transit buses, electric vehicles, and locally manufactured vehicles were exempted from the IAT.
In addition to the IAT, the federal government had 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 percent.
The green tax has similarly been suspended.
Alake said the development is in line with President Bola Tinubu’s promise to address business unfriendly fiscal policy measures and multiplicity of taxes.
“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.
“The 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.
“The government will, therefore, continue to give requisite stimulus by way of friendly policies to allow businesses to flourish in the country.
“President Bola Tinubu wishes to assure Nigerians by whose mandate he is in power that there will not be further tax raise without robust and wife consultations undertaken within the context of a coherent fiscal policy framework.”
