Presidential tax committee recommends N800/$ Customs duty rate

Nigerian businesses are likely to welcome a new proposal that could make planning and budgeting easier. The Presidential Committee on Fiscal Policy and Tax Reforms has recommended setting a fixed exchange rate of N800 per dollar for import duties for the rest of 2024.

Currently, import duty rates change frequently due to fluctuations in the foreign exchange market. This volatility makes it difficult for businesses to plan their finances and has been criticized by many. The committee hopes a fixed rate will allow businesses to operate more smoothly.

The committee has also proposed broader tax reforms. They recommend consolidating the over 100 different tax collection agencies in Nigeria into a single, central agency. Additionally, they suggest implementing a budgeting system that focuses on specific spending goals and introducing long-term financial planning. These changes aim to create a more efficient and stable tax system in Nigeria.

Source: Vanguard