FG set to give new order on tax payment in dollar, import duty

The federal government may have started a plan to stop paying import tariffs on medications, core foods, and other necessities for a six-month period. This move is likely an attempt to control inflation.

This was stated in the "Inflation Reduction and Price Stability (Fiscal Policy Measures) Order 2024," an executive order that the president is anticipated to issue.

According to Punch, the paper was intended to be signed by the President in April, but it was missing his signature.

Plan to waive tax

Plans to waive taxes on fertilisers, chicken feed, flour, and cereals are also included in the agreement.

The presidential order will require the Central Bank of Nigeria and the Ministry of Finance to design a strategy for providing low-interest loans to the manufacturing, pharmaceutical, and agricultural industries.

The document read in part, “The import duty and other tariffs are to be suspended on the following for six months: Staple food items; Raw materials and other direct inputs used for manufacturing: Inputs for agriculture production including fertilisers, seedlings, and chemicals, Pharmaceutical products, Poultry feeds, flour and grains.”

FG to halt VAT on some items

For the remainder of the year, the president is also expected to halt the Value-Added Tax on Automotive Gas Oil, some essential and semi-processed staple foods like pasta and noodles, raw materials used in food production, electricity, and public transportation, as well as agricultural inputs, produce, and pharmaceuticals.

“Suspension of Specific Taxes and Levies: For six months, the order suspends various taxes and levies, such as road haulage tax and other transportation-related charges; fees on bicycles, trucks, canoes, wheelbarrows, and carts; business premises registration; taxes and levies on shops, kiosks, and markets; animal trade and produce sales tax.”

The government is considering bringing in paddy rice and maise from abroad, according to the Accelerated Stabilization and Advancement Plan report.

To stop the rising trend of food inflation in the nation, the ASAP study suggested an executive order limiting the importation of paddy rice to millers.

Also, the following is advised in the document: Import duty exchange rate peg and suspension of import duty and VAT on certain commodities, such as millers' imports of paddy rice.

To alleviate pressure on the naira, the document also requires all governmental levels and their agencies to prioritise acquiring goods and services that are Made in Nigeria.

A part of the document read, “Governments at all levels and their agencies shall patronise made-in-Nigeria goods and services to the extent possible.

“Payments of taxes and levies in foreign currency shall be discontinued to enable the payers to pay in Naira while non-critical spending plans by any MDA involving foreign exchange cost shall be put on hold.

States and local governments are encouraged to support these tax suspensions to ensure broad-based relief for businesses and consumers.”