President Bola Tinubu has suspended the Import Adjustment Tax (IAT) on imported vehicles, a policy approved by the former president Muhammadu Buhari at the twilight of his administration.
Special adviser to the president on special duties, communication and strategy, Dele Alake, made the disclosure on Thursday during a media briefing held at the presidential villa, Abuja.
Motoring World reported that in less than six weeks to the end of his tenure, President Buhari approved the IAT levy on certain categories of new and used vehicles imported into the country.
The policy, which took effect from June 1, 2023, required imported vehicles with 2 litres to 3.9 litres engines to pay an IAT equivalent to two percent of the value of the vehicle, while vehicles with 4 litres engines and above were levied 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.
President Tinubu deactivated the policy via an executive order.
According to Alake, the suspension is in line with President Bola Tinubu’s promise to address business unfriendly fiscal policy measures and multiplicity of taxes in Nigeria.
He said: “As a listening leader, the President issued these orders to ameliorate the negative impacts of the tax adjustments on businesses and households. 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 wide consultations undertaken within the context of a coherent fiscal policy framework.”
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