Just In : Tinubu plans To Suspend Import Duties, Other Tariffs On Staple Food, Drugs To Ease Inflation
This is contained in an executive order given by the President titled, “Inflation Reduction And Price Stability (fiscal policy measures, etc.) Order, 2024” slated to commence on May 1, 2024.
The Nigerian Government under the leadership of President Bola Tinubu is considering suspending the payment of import duties and other tariffs on food items, drugs and other basic commodities for six months.
This is contained in an executive order given by the President titled, “Inflation Reduction And Price Stability (fiscal policy measures, etc.) Order, 2024” slated to commence on May 1, 2024.
However, there was no sign that the document had been signed by the President.
The order also gave presidential authorization to rice millers to import paddy rice at zero duty and Value Added Tax for a period.
This suspension is meant to last for a period of six months.
A copy of the order obtained by SaharaReporters on Thursday reads: “In exercise of the powers conferred on me by section 5 of the Constitution of the Federal Republic of Nigeria (as amended), Section 38 of the Value Added Tax Act, Cap,V1, Laws of the Federation of Nigeria, 2004 (as amended), and all other powers enabling me in that behalf, I, Bola Ahmed Tibubu, President, Federal Republic of Nigeria make the following Order –
“As from the commencement of this Order, the following measures and reliefs shall apply:
“The import duty and other tariffs on the following items are hereby suspended for a period of six months: (a) staple food items; (b) raw materials and other direct inputs used for manufacturing; (c) inputs for agriculture production including fertilisers, seedlings, and chemicals (d) pharmaceutical products (e) poultry feeds, flour and grains.”
It also said that millers would be authorized “to import paddy rice at zero duty and Value Added Tax for a period of 6 months in the first instance in order to improve local supply and capacity utilisation of rice millers.
“Value Added Tax, where applicable, is hereby suspended on the following items for the rest of the year 2024: (a) basic food items and semi-processed staple food items such as noodles and pasta; (b) raw material inputs for the manufacturing of food items, electricity and public transportation; (c) agricultural inputs and produce, and (d) pharmaceutical products.”
It added, “A rebate on import duty is hereby granted by fixing the exchange rate for the purpose of import duties and levies at eight hundred Naira (N800.00) to one United States Dollar (US$1) for a period of 6 months.
“The federal government, including the Federal Capital Territory Administration, shall prioritise the implementation of approved capital expenditures on basic infrastructure which are essential to stimulate productivity and improve the lives of the people.
“Such infrastructure include access roads to farms, solar powered food storage facilities, irrigation for dry season farming, portable water, and public sanitation.
“A minimum of fifty percent of the incremental revenue accruing to the FCT from PMS subsidy removal and Naira flotation shall be earmarked for this purpose, tracked, and reported periodically. States and Local Government Councils are encouraged to adopt this measure.”
