The Federal Government on Tuesday announced one-year deferment of the 35 percent import adjustment tax (levy) imposed on the fully built unit (FBU) electricity meters HSCode 9028.30.00.00 under the 2019 fiscal policy measures.
The announcement was contained in a statement issued by Mr Abdullahi Tanko, the special adviser communication to the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed.
According to the minister’s spokesman, the approval by President Buhari of the fiscal measure was based on a request by the Minister of Finance to support the Nigerian Electricity Regulatory Commission (NERC) in rolling three million electricity meters, which is under the meter asset provider (MAP) framework.
The initiative also aligns with the Economic Community of West African States (ECOWAS) common external tariff (CET) 2017 – 2022 in the government commitment to tackle the electricity challenge in the country,
Tanko stated further that the request had made reference to a 35 per cent import adjustment tax (levy) which was approved in 2015 on the importation of FBU electricity meters which attracted 10 per cent import duty rate in the ECOWAS CET.
He clarified: “The 35 per cent levy was imposed on the recommendation of the Federal Ministry of Industry, Trade and Investment, to encourage local production, as well as protect investments in the local assembly of electricity meters.
“An important feature of the MAP regulation is a gradual up-scaling of the patronage of local manufacturers of electricity meters with an initial minimum local content of 30 per cent with the potential of significant job creation in the area of meter assembly, installation and maintenance”, the minister added.
