There are indications that buyers of luxury automobiles on sale in Nigeria would soon start paying more, as the Federal government pushes through the National Assembly a bill to jerk up value Added Tax (VAT) from 7.5% to 15%.
To this end, some of the goods and services that may be affected include Luxury automobiles like Rolls Royce, Mercedes Benz, BMW among others.
In Nigeria, Rolls Royce and Juguar, seen as luxurious automobiles, are distributed by Coscharis Motors, while Weststar Associates Limited is the authorised exclusive distributor of Mercedes Benz.
Speaking at an investor meeting during the ongoing IMF/World Bank Annual Meetings in Washington DC, Mr. Edun explained that a bill currently before the National Assembly aims to gradually raise VAT on luxury goods, while essential items consumed by poorer and vulnerable Nigerians would remain exempted from VAT or attract a zero rate.
Edun stated: “In terms of VAT, President Bola Tinubu’s commitment is that while implementing difficult and wide-ranging but necessary reforms, the poorest and most vulnerable will be protected.
“So, the Bills going through the National Assembly in terms of VAT will raise VAT for the wealthy on luxury goods, while at the same time exempting or applying a zero rate to essentials that the poor and average citizens purchase.”
He added that the list of essential goods exempted from VAT will be made available to the public in due course.
©Copyright MOTORING WORLD INTERNATIONAL. All rights reserved. Materials, photographs, illustrations and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior written permission from Motoring World International
Contact: [email protected]
