The Nigeria Customs Service has recently confirmed the implementation of the zero per cent import duty and exemption of Value-Added Tax on basic food items as directed by the president of the Federal Republic of Nigeria, Bola Tinubu.
The president granted approval for implementing a zero-percent import duty and exempting the payment of Value-Added Tax on basic food items for an initial period of six months.
On August 8, the Ministry of Finance confirmed the approval in a letter sent to the Nigeria Customs Service. On Wednesday, the Nigeria Customs Service confirmed the approval in a letter sent to Newsmen.
Bashir Adeniyi, the Comptroller-General of the NCS, directed all the officers of the service to begin the enforcement of the directive and measures immediately.
The letter, which was titled Approval for the implementation of zero per cent duty rate on basic food items, was sent to the service Ministry of Finance to confirm that the president of the country has granted approval for the implementation of the import-free import exercise.
The letter signed by the Deputy Comptroller-General, C.K. Niagwan, on August 14, 2024, listed the exempted commodities as maize, husked brown rice, wheat, grain beans, and millet.
She explained that the new directive, which became operational on July 15th 2024, will last till December 31, 2024.
The letter read, “I am directed to forward herewith a copy of the Federal Ministry of Finance letter, confirming His Excellency, Mr President’s approval for the implementation of zero per cent duty rate and Value Added Tax exemption on some basic food items.
The statement explained that the exemption is only limited to business owners that have the capacity to mill and have shown a past integration of some of the exempted products.
The deputy director further explained that the Ministry of Finance will provide the names of the companies that are exempted from the payment and the quota allocated to them. She further noted that during the implementation period, the directive from the Ministry would guide the work of service; she charged men of the service to ensure strict compliance.
On July 10th, the Federal Government announced the removal of duties, tariffs, and taxes on some food items imported into the country. According to the federal government, the exemption applies to all imports carried out through the land and sea borders. The motive was to reduce inflation in the country.
The Nigerian Customs Service had, on August 7th, communicated its plans to commence the implementation of the directive before the end of the month.
The Minister of Finance stated that the waiver was to reduce the price of goods in the market, which he stated cost much more than the normal price of goods.
The minister also confirmed that the companies interested in the importation will need to apply with a track record of the integration of the programme.
The decision has generated some concerns about the loss of revenue due to be paid to the federal government; the comptroller-general of the customs service disclosed the waiver would cost the government N188bn for the six-month period.
He explained that the service would implement special import corridors, which would aid in importing food items into the country.
