The Presidential Fiscal Policy and Tax Reforms Committee has proposed temporary fixing of the foreign exchange (forex) rate for Customs’ import duty rate at the budget benchmark of N800 per dollar with a view to ensuring stability for business planning.

As part of an expansive fiscal and tax reforms, which are currently undergoing law-making processes, the committee is proposing replacement of the Federal Inland Revenue (FIRS) and other national and subnational revenue-collecting agencies with a single, omnibus national revenue agency, a Nigeria Revenue Service (NRS).

The proposed NRS will serve as a sort of one-stop revenue generating, collecting and distributing agency for all the federating units. This is similar to United Kingdom (UK)’s HM Revenue & Customs (HMRC) and similar agencies in advanced economies.

The committee’s proposals also seek to reduce average costs for basic living costs, especially some components fuelling inflation, by removing Value Added Tax (VAT) on business inputs relating to food, health, education and transportation among others.

Chairman, Presidential Fiscal Policy and Tax Reform Committee, Mr Taiwo Oyedele, outlined the key proposals and implications of the fiscal and tax reforms at a Public Consultation Workshop for Journalists and Public Analysts on Policy Exposure and Impact Assessment yesterday in Lagos.

May 31, 2024

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