Tax reform committee proposes ₦ 800/$ rate for customs duty

The Presidential Committee on Fiscal Policy and Tax Reforms has recommended that the federal government adopt an exchange rate of ₦800 per dollar for Customs import duty.

This proposal was announced by the committee’s chairman, Taiwo Oyedele, during a press briefing in Lagos on Thursday.

Oyedele highlighted the challenges businesses face due to the volatility of the foreign exchange (FX) market, which causes frequent changes in the import duty rate. He emphasised the need for stability to allow businesses to plan adequately.

“When we did the budget, we said the naira to the dollar would be ₦800; now it is over 1,000. People need to plan,” Oyedele stated. He further urged the government to sign an order that would set the exchange rate at N800 for customs import duty for the remainder of the year.

The proposal comes in the wake of recent adjustments by the Nigerian Customs Service (NCS) to the FX rate for tariffs and duties. On May 27, the NCS set the rate at ₦1,480 per dollar, following recommendations from the Central Bank of Nigeria (CBN) based on official FX market trading activities.

The director-general of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, also weighed in on the issue. On May 16, he suggested that customs should adopt a quarterly exchange rate between ₦800/$ and ₦1,000/$ for import duties assessment to provide more predictability for businesses.

Oyedele’s call for a fixed rate of N800 per dollar aims to address the concerns and promote better economic planning and stability for businesses engaged in importation.

The committee’s recommendations are part of broader efforts to reform Nigeria’s fiscal and tax policies to enhance economic growth and stability.