Tax Reform Committee Proposes ₦800/$ as New Customs Import Duty Rate. The Presidential Council on Budgeting and Tax Reforms has requested the federal government to use an exchange rate of ₦800 per dollar for customs import duties.

Tax Reform Committee Proposes ₦800/$ as New Customs Import Duty Rate
Tax Reform Committee Proposes ₦800/$ as New Customs Import Duty Rate

Taiwo Oyedele, the committee’s chairman, met with press on Thursday about the tax panel’s actions in Lagos.

While presenting some of the committee’s suggestions that the tax expert voiced concern about the import duty rate, which fluctuates owing to some swings in the foreign currency (FX) market.

According to Oyedele, this prevents businesses from preparing effectively.

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 Nigerian Customs Service (NCS) has recently made many changes to the import duty rate.

On May 27, customs set the FX rate for tariffs and duties to ₦1,480 per dollar.

Customs usually use FX rates set by the Central Bank of Nigeria (CBN) for import duties based on trading activity in the official FX market.

On May 16, Muda Yusuf, the director-general of the Centre for the Promotion of Private Enterprise (CPPE), stated that customs should set an annual exchange rate between ₦800/$ and ₦1000/$ for import duties test.

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