14th August 2024, NewsOrient, News

The Nigeria Customs Service (NCS), on Wednesday, confirmed President Bola Ahmed Tinubu’s approval for the implementation of a Zero Percent Duty Rate (0%) and Value Added Tax (VAT) exemption on selected basic food items.

Customs spokesman Abdullahi Maiwada said this in a statement released on Wednesday.

He said the presidential approval was communicated through the Minister of Finance and the Coordinating Minister of the Economy, Olawale Edun.

This policy is effective from 15th July 2024 and will remain in force until 31st December 2024, Maiwada added.

He said the move would alleviate hardship faced by Nigerians due to high prices of essential food items.

“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,” the Customs spokesman noted.

He added that the implementation of the policy would 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,” he said.

Source: Channels Television

~ NewsOrient