The Presidential Committee on Fiscal Policy and Tax Reforms suggests setting the exchange rate at N800 per dollar for customs import duties for the remainder of the year.
Customs duty is currently adjusted unpredictably, sometimes twice a day, marking a significant departure from the planned change recommended, totaling about 40 adjustments so far this year.
Additionally, Customs duty rates have been closely tied to the unpredictable changes in the foreign exchange market, swinging between N900 and N1,700 per US Dollar this year alone. This situation has been heavily criticized across different business sectors.
The committee’s Chairman, Taiwo Oyedele, announced this new approach yesterday while discussing the tax panel’s activities in Lagos.
The tax expert, who formerly partnered with PwC Nigeria, stated that the Nigeria Customs Service’s frequent changes to the import duty rate, influenced by the FX market’s instability, disrupt businesses’ ability to plan effectively.