Posted by The tariff rate for customs imports for the remainder of the year has been set at N800 per dollar by the Presidential Committee on Fiscal Policy and Tax Reforms.
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In the present system, customs duties are adjusted haphazardly—sometimes twice a day—with a total of forty adjustments made this year, so this shift will be a significant departure.
Values have fluctuated widely this year, from N900 to N1,700 to one US dollar, mirroring the wildly unpredictable fluctuations in the foreign exchange market, a phenomenon that has drawn strong criticism from various industry groups.
During yesterday’s meeting in Lagos, committee chairman Taiwo Oyedele revealed the new course of action.
According to the tax expert, who was formerly a partner at PwC Nigeria, businesses are unable to make sufficient plans since the Nigeria Customs Service (NCS) adopts a new import duty rate on a regular basis in response to the instability of the foreign exchange (FX) market.
The exchange rate has risen from N800—the amount we estimated when we were creating the budget—to more than N1,000, he said. People should make plans.
So, we’re formally requesting that the government sign an order stating that, from now until December, we will use N800 to pay import duty. Thus, the N800 has been suggested.
As a general rule, customs will use the foreign exchange rates suggested by the CBN for import tariffs, which are based on the official foreign exchange market.