Breaking: President Tinubu Plans To Suspend Import Duties, Other Tariffs On Staple Food, Drugs To Ease Inflation
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 July 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 six months.
A copy of the order obtained by this Newspaper on Wednesday 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 six months: (a) staple food items; (b) raw materials and other direct inputs used for manufacturing; (c) inputs for agriculture production including fertilizers, 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 6 months in the first instance to improve local supply and capacity utilization 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 import duties and levies at eight hundred Naira (N800.00) to one United States Dollar (US$1) for 6 months.
“The federal government, including the Federal Capital Territory Administration, shall prioritize the implementation of approved capital expenditures on basic infrastructure which are essential to stimulate productivity and improve the lives of the people.
“Such infrastructure includes access roads to farms, solar-powered food storage facilities, irrigation for dry season farming, potable 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.”
