The Nigeria Customs Service has been directed to start the implementation of the zero per cent import duty and exemption of Value-Added Tax on basic food items.
This was after President Bola Tinubu approved the implementation of zero per cent import duty and exemption of Value-Added Tax on basic food items.
The Ministry of Finance confirmed the approval in a letter to the Nigeria Customs Service dated August 8, 2024. The Nigeria Customs Service also confirmed the development in a document shared with one of our correspondents on Wednesday.
Responding, the Comptroller-General of the NCS, Bashir Adeniyi, instructed officials of the service to commence enforcement measures.
In the circular titled, “Approval for the implementation of zero per cent duty rate on basic food items”, the NCS said the Ministry of Finance sent a letter to the service, informing the agency that Tinubu has approved the implementation.
The letter dated August 14, 2024, and signed by the Deputy Comptroller-General, C.K Niagwan, noted that the food commodities include maize, husked brown rice, wheat, grain beans, and millet.
She stated that the policy is restricted to the items listed and is effective from July 15 to 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.
“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 further stated that the finance ministry would provide the list of importers and approved quotas during the implementation period and called for wide coverage to ensure strict compliance.
“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 announced on July 10 the suspension of duties, tariffs, and taxes on the importation of food staples through land and sea borders to reduce inflation.
On August 7, the NCS said the duty waiver on imported foods would be implemented within the next week.
In the first letter, the finance minister, Wale Edun, said 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 showed that the government crashed the duty rate and levy from 30 per cent to zero for husked brown rice, from five per cent to zero for grain sorghum, millet, and maize, and removed the 20 per cent duty levy for wheat and beans.
Edun said importers applying for the duty waiver must have milling capacity and a verifiable backward integration programme.
BIP is the sourcing of raw materials locally to reduce dependence on foreign raw materials.
“This 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.
“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 said.
On Tuesday, the comptroller-general of the customs service said the Federal Government would lose about N188bn in revenue due to the suspension of import duties on food commodities.
Adeniyi said the service would ensure adequate implementation by enlisting special corridors to clear imports of food items.
Credit: punchng.com
