The Presidential Committee on Fiscal Policy and Tax Reforms has proposed a fixed exchange rate of N800 per dollar for Customs import duty rates for the remainder of the year. This move aims to bring stability to the Customs duty regime, departing from the current practice of frequent and unpredictable changes, which have occurred approximately 40 times this year alone. The fluctuating exchange rate, ranging from N900 to N1,700 per US Dollar, has drawn widespread criticism from various business sectors.
Taiwo Oyedele, Chairman of the committee and former partner at PwC Nigeria, emphasized the need for consistency in import duty rates to facilitate business planning. He urged the government to implement a fixed rate of N800 for import duty payments until December, providing businesses with a predictable framework for financial planning.
The current practice, where Customs duty rates are tied to the volatile foreign exchange market, has been detrimental to businesses, disrupting their planning processes. In light of this, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), suggested setting a quarterly exchange rate between N800/$ and N1000/$ for import duties assessment.
Furthermore, the committee recommended streamlining the numerous tax collection agencies at the federal, state, and local council levels into a centralized tax agency, to be known as the Nigerian Revenue Service. Additionally, it proposed implementing zero-based budgeting and introducing long-term appropriation to enhance budget transparency and effectiveness.
