Tinubu could suspend import duties on food and medicines

According to reports, the federal government is preparing to suspend import duties on basic foodstuffs, medicines and other essential goods for an initial period of six months.

This significant policy adjustment is set out in an executive order entitled Inflation Reduction and Price Stability (Fiscal Policy Measures) Order 2024, which has yet to be signed by the President. Bola Tinubu However, the signing was planned for April.

According to a document seen by Punch, the order provides for the temporary lifting of import duties on essential commodities, including fertilizers, poultry feed, flour and grains.

The intention behind these measures is to reduce the cost of these essential goods, thereby reducing the overall cost of living and easing the economic pressure on Nigerian consumers.

In addition, the Executive Order will require the Ministry of Finance and the Central Bank of Nigeria (CBN) to jointly develop a strategy for the provision of soft loans to sectors critical to the country’s economy, such as agriculture, pharmaceuticals and manufacturing.

The document states, among other things: “Import duties and other tariffs will be suspended for six months on the following products: staple foodstuffs; raw materials and other direct inputs; inputs for agricultural production, including fertilizers, seedlings and chemicals; pharmaceutical products, poultry feed, flour and grains.”

The President is also expected to suspend VAT on diesel, certain staple and semi-processed foods such as noodles and pasta, raw materials for food production, electricity and public transport, agricultural inputs, fruits and vegetables, and pharmaceutical products for the rest of the year.

“Suspension of certain taxes and duties: The order provides for the suspension for six months of various taxes and duties, such as road freight tax and other transport-related fees; fees for bicycles, trucks, canoes, wheelbarrows and carts; business registrations; taxes and duties on shops, kiosks and markets; animal trade and agricultural sales tax.”

In its report on the accelerated stabilization and progress plan, the government is considering importing paddy rice into the country in addition to maize.

The ASAP report recommended an executive order for the import of paddy rice to millers to curb the growing food inflation across the country.

The document also recommends: suspending import duties and VAT on certain goods, including imports of paddy rice by millers, and fixing import duties at the exchange rate