Customs agents seek clarity on conflicting fiscal policy orders
The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) has raised concerns regarding conflicting government directives on fiscal policy measures aimed at inflation reduction and price stability.
The group expressed concern that the conflicting dates could cause confusion in the trading community and delay the intended benefits of these policies.
In an open letter to President Bola Ahmed Tinubu, signed by the National President NCMDLCA, Lucky Amiwero, the group highlighted inconsistencies between a Presidential Order dated May 1, 2024, and a Ministerial Circular issued by the Ministry of Finance on August 8, 2024.
The licensed customs agents said the presidential order on inflation reduction and price stability set the commencement of key fiscal measures, such as tariff suspensions on staple foods, raw materials for manufacturing, agricultural production inputs, pharmaceutical products, poultry feeds, flour and grains and essential imports, for May 1, 2024.
They said, however, a later circular issued by the Minister of Finance backdated the implementation of a zero per cent duty rate on basic food items to July 15, 2024.
The group also noted that the backdated circular from the Minister of Finance contradicted the Trade Facilitation Agreement (TFA), which requires proper notification and adequate time for traders to adjust to new regulations.
In the letter, the group urged the government to resolve the discrepancies and provide clarity on whether the Presidential Order has been superseded or suspended by the Ministerial Circular.
The group also emphasised the importance of harmonising these policies to avoid undermining the administration’s goals of stabilising prices and reducing inflation.
Among the critical issues highlighted was the exclusion of several items, including raw materials for manufacturing and agricultural inputs, from the Ministerial Circular, despite their inclusion in the Presidential Order.
The group also called attention to the need for clear guidelines on the suspension of import duties for rice millers and the variation of Value Added Tax (VAT) for essential goods.
The group further advocated for the stabilisation of the domestic market by implementing an import duty rebate, fixing the exchange rate for duties at N800 to $1 for a six-month period to mitigate the impact of dollarisation on the Nigerian economy.
This, the group said, is very important to eliminate the use of dollarising the domestic market and to stabilise it for consistent, predictable and transparent transactions.
The letter, copied to several key government agencies, including the Federal Ministry of Finance, Nigeria Customs Service, Federal Inland Revenue Service, the Central Bank of Nigeria and Federal Ministry of Justice, also called for immediate resolution to avoid disruptions in the implementation of fiscal policy measures intended to curb inflation and stabilise prices in the market.
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