THE presidential committee on fiscal policy and tax reforms said it had asked the federal government to adopt an exchange rate of N800 per dollar for Customs import duty.

The chairman of the committee, Taiwo Oyedele, stated this on Thursday, May 30, while engaging journalists on the activities of the tax panel in Lagos.

While presenting some recommendations of the committee, the tax expert expressed concern over the import duty rate which constantly changes due to the volatility of the foreign exchange (FX) market.

Oyedele said this did not allow for adequate planning by businesses with Nigeria being largely an import-dependent country.

“When we did the budget, we said naira to the dollar would be N800, now it is 1,000 something. People need to plan,” he said.

”So now, we’re saying dear government, can you please sign an order that says for the purpose of paying import duty, we shall use N800… for the rest of the year till December? So, we have proposed N800,” he disclosed.

Recall the incessant spike in the import duty rate by the Nigerian Customs Service (NCS).

This development, some economy watchers say is a major trigger to Nigeria’s rising inflation currently at 33.69 per cent.

On May 27, the Customs adjusted the FX rate for tariffs and duties to N1,480 per dollar.

Customs typically adopt FX rates recommended by the Central Bank of Nigeria (CBN) for import duties based on trading activities in the official FX market.

A board member of the Nigeria Customs Service (NCS), Muda Yusuf, and the Director-General of the Centre for the Promotion of Private Enterprise (CPPE), said the Customs should set the Customs import duty rate at N1000/$ to cushion the effect of the high cost of imported goods on Nigerians amid rising inflation.

“We should have a fixed rate for our Customs import duty. It should be a fixed rate of a maximum of N1,000 and let it remain like that for the next six months or a year,” he suggested.