The Presidential Committee on Fiscal Policy
and Tax Reforms has proposed setting the Customs import duty rate at N800 per
dollar for the remainder of the year. This recommendation aims to address the
erratic changes in the current Customs duty rates, which have fluctuated as
many as 40 times this year, ranging between N900 and N1,700 per dollar.
Chairman of the committee, Taiwo Oyedele,
highlighted that the frequent adjustments by the Nigeria Customs Service (NCS)
due to the volatile foreign exchange (FX) market hinder business planning. He
emphasized the need for a stable rate, stating, "When we did the budget,
we said naira to dollar would be N800, now it is way more than N1,000. People
need to plan."
The committee's proposal suggests that the
government adopt the N800 rate for import duties until December, ensuring a
stable and predictable environment for businesses. This approach has received
support from industry analysts, including Dr. Muda Yusuf of the Centre for the
Promotion of Private Enterprise (CPPE), who has recommended setting a quarterly
exchange rate between N800/$ and N1000/$ for import duties.
In addition to the Customs duty recommendation, the committee has also proposed consolidating the over 100 different tax collection agencies into a single central tax agency, the Nigerian Revenue Service. They further recommended implementing zero-based budgeting and introducing long-term appropriation to enhance budget efficiency and transparency.
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