Breaking: FG Reduces Cost Of Imported Car Duties From 35 to 5%

Nigerians planning to buy new cars in the year 2021 may have reasons to rejoice with the new policy of the Federal Government.

It is good news that the Federal Government has drastically reduced the cost of importing a car from a foreign country from 35% to 5%.

What this means is that, until December 31, 2020, what a car buyer paid as duty on an imported vehicle is 35% of the cost of buying same.

This means, if the car was bought at the rate of N1 million, the 35% import duty will be N350,000.

With the reduction from 35% to five percent, a car importer will only pay a sum of N50,000 as duty.

The Cable reports that car importation has gotten cheaper: it says Section 38 of a finance act signed by President Muhammadu Buhari “provides that levy to be paid on imported cars has been reduced from 35% to 5%." 

In a recent publication by Premium Times, the Vice President, Professor Yemi Osinbajo was quoted as saying that the reduction in car import duty will reduce the hardship in cost of transportation.

He added that it is to cushion the effect of the deregulation of the oil sector which brought about the removal of fuel subsidy.

It is good news to car buyers and those who make use of public transports as this will have a good effect in the cost of transportation.