The federal government set to begin implementation of the zero import duty on food items into the country.
The government through the ministry of finance has approved new guidelines for implementation of its policy on total removal of import duties and Value Added Tax (VAT) on selected basic food items.
The policy is effective from 15th July 2024 and will remain in force until 31st December 2024, the government said.
The Nigeria Customs Service (NSC), released import guidelines for the implementation of a Zero Percent Duty Rate VAT, exemption on selected basic food items.
The import waiver was to mitigate the high cost of food items in the Nigerian market by making essential commodities more affordable for citizens.
“Drawing from the Presidential directives aimed at alleviating the hardship faced by Nigerians due to high prices of essential food items, the NCS is pleased to announce that His Excellency, the President of the Federal Republic of Nigeria Bola Ahmed Tinubu through the minister of Finance and the Coordinating Minister of the Economy, Olawale Edun, approved the regulation for the implementation of a Zero Percent Duty Rate (0%) and Value Added Tax (VAT) exemption on selected basic food items. This policy is effective from 15th July 2024 and will remain in force until 31st December 2024.
“This measure aims to mitigate the high cost of food items in the Nigerian market by making essential commodities more affordable for citizens. The initiative is part of the government’s broader efforts to address food security challenges and ensure that basic foodstuffs are accessible to all Nigerians.
“However, it is important to emphasise that while this temporary measure is intended to address current hardships, it does not undermine the long-term strategies put in place to safeguard local Farmers and protect Manufacturers,” Edun stated.
The NCS, however, reiterated that for importers to participate, they must have filed annual returns and financial statements, paid taxes and statutory payroll obligations for the past five years.
He disclosed further that for companies importing husked brown rice, grain sorghum, or millet they must own a milling plant with a capacity of at least 100 tons per day, operated for at least four years, and have enough farmland for cultivation.
“It is pertinent to note that the implementation of this policy will focus on addressing the national supply gap. To participate in the zero-duty importation of basic food items, a company must be incorporated in Nigeria and have been operational for at least five years.
“It 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 a capacity of at least 100 tons 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.
The basic food items eligible for the zero percent duty rate include: husked brown, rice, grain sorghum, millet, maize, wheat and beans.
“The Federal Ministry of Finance will periodically provide the NCS with a list of importers and their approved quotas to facilitate the importation of these basic food items within the framework of this policy. The policy requires that at least 75 per cent of imported items be sold through recognised commodities exchanges, with all transactions and storage recorded.”
The Customs spokesman urged all stakeholders to cooperate fully in implementing the initiative for the benefit of all Nigerians.
“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.
“The Nigeria Customs Service, under the leadership of Comptroller General of Customs, Bashir Adewale Adeniyi, remains committed to supporting government policies to enhance food security and promote economic stability. The Service urges all stakeholders to cooperate fully in implementing this initiative for the benefit of all Nigerians.”
Support KAKAKIOODUA Online Media Services for better performance, integrity and credibility
We are dedicated to delivering on-the-spot coverage and this requires a lot of expenses.
We value your readership as we extend our tentacles to national and international daily news updates, in-depth investigations into pressing local and national issues, or political and entertaining trending stories.
It’s essential to acknowledge that news production and on-the-spot coverage incur expenses as we plan to multiply our efforts.
Would you consider supporting us with a modest contribution?
Send your tokens to;
 |
| Oladimeji Lasore |
FIRST BANK
2034494099
ECOBANK
4771101196
ADVERTISEMENT
👇 Click to watch video 👇
Daniel Adewole Awe Medical Center is a healthcare facility located in Ilesa, Osun State, providing quality primary and secondary healthcare services to the community and its environs.
No comments:
Post a Comment