- Customs says it will begin implementation of tax waiver on essential food items and drugs next week
- It attributed the delay to a late response from the Federal Ministry of Finance
- The tax waiver and import duty suspension are part of policies of the Federal Government aimed at addressing food inflation
The Comptroller-General of the Nigeria Customs Service (NCS), Adewale Bashir Adeniyi, says the implementation of tax waiver on the importation of essential food items and drugs will begin next week.
Adeniyi, at a joint press briefing by Service Chiefs and heads of security agencies at the Defence Headquarters, Abuja, on Tuesday, August 6, said the delay is due to late release of guidelines from the Federal Ministry of Finance.
Recall that the Federal Government recently suspended import duties and taxes on essential food items to address skyrocketing inflation.
The Customs chief said, “One of the things that the president has done is to reduce the cost of food to reduce the effects of inflation by suspending customs duties and taxes on imported food items for a period of time. We believe that when this is implemented, it will help to reduce prices of food items in the market.
“The Nigeria Customs Service is committed to the implementation of this particular fiscal policy as enunciated by the government but we need to be very careful in implementation of this policy and this is why the guidelines for implementation are being meticulously worked out at the Federal Ministry of Finance.
“We must address the interest of all the stakeholders, because most of these food items are going to enjoy duty waivers and concessions and some of the imported items are also being cultivated locally. Their interests would also be protected.
“There is the issue of striking a balance between the long term interest of Nigerian farmers, Nigerian stakeholders who are involved in the production of these items and the short term interest of addressing food inflation.
“So the guidelines are being worked out at the Federal Ministry of Finance and I can assure you that within the next one week these guidelines will be ready and Nigeria Customs would begin implementation of these particular fiscal policies.”
Assurance comes amid increase in import duty rate
The exchange rate used by the Nigeria Customs Service (NCS) to calculate import duty has increased by N18.412 to N1,618.732/$ following further depreciation of the naira by 6.43 per cent.
The rate increased from N1,600.32 previously to N1,618.732/$, according to information posted on the NCS exchange rate on Monday, August 5, following a 6.43 per cent depreciation of the naira in July.
The naira rose to over N1,600 in July, trading between N1,500.32 and N1,621.12, according to data from FMDQ.
FG recently suspended import duties, taxes on essential food items
Recall that three weeks after the Federal Government announced a 150-day import duty suspension of staple foods to address supply shortages, the Customs boss announced the suspension of import duties and taxes on essential food items to make them affordable and to address food inflation.
The government has also dispatched 740 rice trucks to states at 20 trucks for each of the 36 states and the Federal Capital Territory, Abuja.
While disclosing this on Tuesday, July 30, the Comptroller General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, reiterated the Federal Government’s commitment to implementing import duties and taxes suspension seamlessly to tame food inflation and combat hunger in the country.
He added that the NCS has streamlined export processes to facilitate the efficient movement of goods from Nigeria to international markets.
The Customs boss said the export initiatives include the introduction of advanced ruling systems, authorised economic operators and a time-release study designed to enhance trade, stimulate the economy and create new opportunities.
Rising food prices pushes headline inflation rate to 34.19%, food inflation to 40.87 %
Meanwhile, TheRadar reported that the increasing prices of food pushed Nigeria’s headline inflation rate to a new 28-year high of 34.19 per cent in June 2024.
According to data released by the National Bureau of State Statistics (NBS) on Monday, July 15, the June rate is 0.24 percentage points higher than the 33.95 per cent recorded in May 2024.
