Customs Tariff Rates Adjusted: Federal Government Seeks Balance Between Revenue Collection and Product Affordability

By: Amadi Vincent Uzoma
Alleviating news broke recently inside the consequence community, as the presidential committee on fiscal policy and assess changes has proposed N800/$1 as a reasonable trade rate for computing Customs import duty payments, encouraging the government government to grasp it.
Taiwo Oyedele, chairman of the committee, expressed this in Lagos on Thursday at an interface with journalists on the exercises of the tax panel.
According to him, the suggestion sprang from the discomforting effect of the tumbling naira and other volatilities within the foreign exchange market, which have to some degree foreclosed the possibility of accomplishing a steady trade rate, which the moment community needs to function proficiently.

The new rate, in the event that received by the government, is anticipated to lead to an exceptional drop in the costs of imported goods for consumers.
The Nigerian importers and agents have been tormented by an unsteady exchange rate within the final year as the Central Bank of Nigeria (CBN) has severally balanced the Traditional trade rate upward, coming up to N1,481.482/$1 prior to the year. But the rate today is N1,196, concurring with the data on the Nigerian exchange entrance on Thursday.
Oyedele said, “When we did the budget, we said naira to the dollar would be N800, presently it is 1,000 something. People ought to plan.
“We are saying that the government can sign an arrangement that says N800 per dollar ought to be utilized for paying Traditions obligations for the rest of the year till December.
The committee’s proposal aligns with the well-known conclusion of industry stakeholders who called for hedging of the trade rate for Customs duties to permit arranging.
Commenting on the development, the previous acting National President of the Association of National Licensed Customs Agents (ANLCA), Dr. Farinto Kayode, told Day by Day Sun that the proposition was an alleviating development.

“It is a great thing that committee is considering in that direction, meaning that there’s still light after the tunnel because our consequence percentage continues to drop on a daily basis.
“So, if government can execute their arrangement, I’m concoring with their recommendation but I’m recommending 1000/$1. Let us have it as a level rate for all Traditions operations between modern and the conclusion of the year.
“By that time, it’ll help the importers know that there’s expectation in our outside exchange, let me now go and moment. It could be a great one and a welcome development,” he said.
A merchant and President of, the Association of Motor Dealers of Nigeria (AMDON), Prince Ajibola Adedoyin, said that the development is going to help things like manufacturing and the transportation sector.
According to him, it is after the impact of the arrangement, in the long run, is reaching praiseworthy since if one watches it, that same exchange rate is the major issue motor dealers have in terms of the cost of vehicles.
“You know apart from the truth that everything has gone up but if you look at it exceptionally well, it is the trade rate that made the cost of vehicles to go up. So the arrangement will grant more accessibility for Nigerians to be able to buy cars.
“And at the conclusion of the day, the arrangement is aiming to offer assistance the transportation industry, indeed as well, is attending to check the rate of mischance on our streets. So it’ll be a welcome thought on the off chance that it being given a thrust and approved,” he included.
Kingsley Igwe, the National Secretary of the National Association of Government Approved Freight Forwarders, has urged the Central Bank of Nigeria (CBN) to consider hedging or fixing the foreign exchange rate for duty payment purposes.
“The predictability of the fetched of clearing in Nigeria is retrogressive due to the fluctuating FX rate for duty payment, which isn’t great for Nigeria’s logistics performance index rating,” Igwe said.
In the first quarter alone, a add up to of 28 rates were coordinated by the CBN for computing Customs duties, according to Wale Adeniyi, comptroller general of Customs.