Economy
THE Federal Government has unveiled guidelines for the implementation of the “Zero Percent Duty Rate and Value Added Tax” exemption on certain basic food items.
The announcement is contained in a statement issued by the Spokesperson of the Nigeria Customs Service (NCS), Abdullahi Maiwada on Wednesday in Abuja.
Maiwada said that President Bola Tinubu approved the guidelines through Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
The News Agency of Nigeria (NAN) reports thaton July 8, the Minister of Agriculture and Food Security, Abubakar Kyari, announced the suspension of duties, tariffs, and taxes on certain imported food items.
The food items included maize, husked brown rice, wheat, and cowpeas.
According to Maiwada, the policy is effective from July 15, and will remain in place until December 31.
He listed the guidelines, which include that only companies incorporated in Nigeria and operational for at least five years were eligible to participate in the zero-duty importation of the staples.
“The company must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.
“Companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with capacity of at least 100 tonnes per day, operated for at least four years, and have enough farmland for cultivation.
“Those importing maize, wheat, or beans must be agricultural companies with sufficient farmland or feed mills/agro-processing companies with an out-grower network for cultivation,” he said.
The NCS official said that the Federal Ministry of Finance would periodically provide the service with a list of importers and their approved quotas to facilitate the importation of the staples within the policy’s framework.
He said that the policy required that at least 75 per cent of imported items be sold through recognised commodity exchanges, with all transactions and storage recorded.
“ Companies must keep comprehensive records of all related activities, which the government can request for compliance verification.
“If a company fails to meet its obligations under the import authorisation, it will lose all waivers and must pay the applicable VAT, levies, and import duties.
“This penalty also applies if the company exports the imported items in their original or processed form outside Nigeria,” he said.
He, however, said that while the policy was a temporary measure aimed at addressing the current economic hardships, it does not undermine the long-term strategies put in place to safeguard local farmers and protect manufacturers.
According to the spokesperson, the previous duty rate and levy for husked rice was 30 per cent , beans 20 per cent, wheat 20 per cent, while millet, maize and grain sorghum were five per cent.(NAN)
A.I
Aug. 15, 2024
Tags: Abdullahi Maiwada Abubakar Kyari Wale Edun
