The Nigeria Customs Service has been directed to start out the implementation of the zero per cent import responsibility and exemption of Value-Added Tax on fundamental meals objects, The PUNCH studies.
This was after President Bola Tinubu permitted the implementation of zero per cent import responsibility and exemption of Value-Added Tax on fundamental meals objects.
The Ministry of Finance confirmed the approval in a letter to the Nigeria Customs Service dated August 8, 2024. The Nigeria Customs Service additionally confirmed the event in a doc shared with one in every of our correspondents on Wednesday.
Responding, the Comptroller-General of the NCS, Bashir Adeniyi, instructed officers of the service to start enforcement measures.
In the round titled, “Approval for the implementation of zero per cent duty rate on basic food items”, the NCS mentioned the Ministry of Finance despatched a letter to the service, informing the company that Tinubu has permitted the implementation.
The letter dated August 14, 2024, and signed by the Deputy Comptroller-General, C.Ok Niagwan, famous that the meals commodities embody maize, husked brown rice, wheat, grain beans, and millet.
She said that the coverage is restricted to the objects listed and is efficient from July 15 to December 31, 2024.
The letter learn, “I’m directed to ahead herewith a replica of the Federal Ministry of Finance letter, confirming His Excellency, Mr President’s approval for the implementation of zero per cent responsibility charge and Value Added Tax exemption on some fundamental meals objects.
“You are to note the following, ‘the policy is restricted to the items listed in the letter and it is effective July 15, 24 until December 31, 24. The importation of these items shall be limited to investors with milling capacity and a verifiable Backward Integration Programme for some of the items.”
The deputy director additional said that the finance ministry would supply the checklist of importers and permitted quotas throughout the implementation interval and known as for extensive protection to make sure strict compliance.
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“The Federal Ministry of Finance shall from time to time, during the implementation period, furnish the Nigeria Customs Service with the list of importers and their approved quotas to guide the importation of the basic food items. Ensure wide circulation for strict compliance, please,” the letter added.
Recall that the Federal Government introduced on July 10 the suspension of duties, tariffs, and taxes on the importation of meals staples by way of land and sea borders to cut back inflation.
On August 7, the NCS mentioned the responsibility waiver on imported meals could be applied inside the subsequent week.
In the primary letter, the finance minister, Wale Edun, mentioned the “measure which is geared towards ameliorating the high cost of food items in the Nigerian market shall be limited to the national supply gap to be determined by a committee set up by the minister”.
It confirmed that the federal government crashed the responsibility charge and levy from 30 per cent to zero for husked brown rice, from 5 per cent to zero for grain sorghum, millet, and maize, and eliminated the 20 per cent responsibility levy for wheat and beans.
Edun mentioned importers making use of for the responsibility waiver will need to have milling capability and a verifiable backward integration programme.
BIP is the sourcing of uncooked supplies regionally to cut back dependence on overseas uncooked supplies.
“This measure which is geared in the direction of ameliorating the excessive value of meals objects within the Nigerian market shall be restricted to the nationwide provide hole to be decided by a committee arrange by the minister.
“The importation of these items shall also be limited to investors with milling capacity and verifiable Backward Integration Programme for some of the items,” the minister mentioned.
On Tuesday, the comptroller-general of the customs service mentioned the Federal Government would lose about N188bn in income because of the suspension of import duties on meals commodities.
Adeniyi mentioned the service would guarantee enough implementation by enlisting particular corridors to clear imports of meals objects.