FG Considers Duty Suspension and VAT Cuts to Fight Inflation

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In an effort to combat inflation, the Nigerian government is proposing a six-month suspension of import duties on essential goods. This includes staple food items, drugs, and other necessities. The plan, outlined in a document sent to President Bola Tinubu for approval, also calls for the Ministry of Finance and Central Bank of Nigeria to develop a program offering low-interest loans to key sectors like agriculture, pharmaceuticals, and manufacturing.

The proposal goes beyond duty suspension. It recommends a year-long value-added tax (VAT) cut on various goods and services. This includes basic food items, processed foods like noodles and pasta, agricultural inputs, electricity, public transportation, and pharmaceutical products.

By reducing the tax burden on these essentials, the government hopes to make them more affordable for consumers. The document hasn’t been signed by the President yet, but it signifies a potential shift in policy to address rising inflation.

Source: THIS DAY

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