Tax reform committee charges FG to peg customs import duty rate at N800/$1

Importers in the Nigerian business ecosystem might soon have a reason to smile as the presidential committee on fiscal policy and tax reforms disclosed that it has proposed that the federal government peg an exchange rate of N800/$1 for customs import duty.

Taiwo Oyedele, chairman of the committee, made this known on Thursday while engaging journalists on the activities of the tax panel in Lagos.

It would be recalled that the customs import duty rate has been on a yoyo movement recently with critical stakeholders calling for the rate to be fixed.

Importers in the Nigerian business ecosystem might soon have a reason to smile as the presidential committee on fiscal policy and tax reforms disclosed that it has proposed that the federal government peg an exchange rate of N800/$1 for customs import duty.

Taiwo Oyedele, chairman of the committee, made this known on Thursday while engaging journalists on the activities of the tax panel in Lagos.

According to Oyedele while presenting some recommendations of the committee, the tax expert expressed concern over the import duty rate which constantly changes due to the volatility of the foreign exchange (FX) market.

This, Oyedele said, does not allow for adequate planning by businesses.

READ ALSO: Again, CBN raises Customs import duty rate to N1, 481/$1

“When we did the budget, we said naira to dollar will be N800, now it is N1,000 something. People need to plan,” he said.

”So, now, we’re saying dear government, can you please sign an order that says for the purpose of paying import duty, we shall use N800… for the rest of the year till December.

“So, we have proposed N800.”

In recent times, the import duty rate has witnessed yoyo movement by Nigeria Customs Service (NCS).

On May 27, the customs adjusted the FX rate for tariffs and duties to N1,480 per dollar.

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