Tax Reform Committee has proposed ₦800/$ as the Customs Import Duty Rate.
NewsOnline Nigeria reports that the Presidential Committee on Fiscal Policy and Tax Reforms has asked the federal government to adopt an exchange rate of ₦800 per dollar for customs import duty.
The chairman of the committee, Taiwo Oyedele, spoke on Thursday while engaging journalists on the activities of the tax panel in Lagos.
While presenting some of the committee’s recommendations, the tax expert expressed concern over the import duty rate, which constantly changes due to the volatility of the foreign exchange (FX) market.
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This, Oyedele said, does not allow for adequate planning by businesses.
He said, “When we did the budget, we said naira to dollar will be ₦800, now it is 1,000 something. People need to plan.
“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 ₦800… for the rest of the year till December.
“So, we have proposed ₦800.”
The import duty rate in recent times has witnessed incessant adjustments by The Nigerian Customs Service (NCS).
On May 27, the customs adjusted the FX rate for tariffs and duties to ₦1,480 per dollar.
Customs typically adopt FX rates recommended by the Central Bank of Nigeria (CBN) for import duties based on trading activities in the official FX market.
On May 16, Muda Yusuf, the director-general of the Centre for the Promotion of Private Enterprise (CPPE), said the customs should set a quarterly exchange rate between ₦800/$ and ₦1000/$ for import duties assessment.