The Nigerian government has explained why it cannot use a fixed exchange rate for import taxes, which are the fees paid on goods brought into the country.
According to Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy, the law requires the government to use the current market exchange rate instead of a set or fixed rate.
The government is working to change the law in the future, but this process will take time and must be approved by lawmakers.
The government has also announced that new rules for withholding tax, which is a small amount of money businesses pay in advance to cover future taxes, are now official.
These new rules will make it easier for businesses, especially small companies and factories, to manage their money. This means they won’t have to worry as much about paying too much tax too soon.
Finally, Oyedele said that using the current market exchange rate for import taxes has been challenging for businesses because it keeps changing.
Some people want the government to use a fixed rate to help businesses plan better when they buy and sell goods from other countries. The government is trying to find ways to support businesses while still following the law.