ANLCA laments how CBN official exchange rate increases import duty by 45 percent

The Association of Nigerian Licensed Customs Agents (ANLCA) has once again cried out to the President Bola Ahmed Tinubu’s led Federal government to come to the aid of Freight Forwarders and Customs Brokers over the incessant changes in government fiscal and monetary policies that is affecting the international trade chain.

The foremost Customs Brokers association, through its Acting National President, Dr Farinto Collins made this known on Monday, during the association’s National Executive Council (NEC) meeting held in Lagos.

He lamented that due to the removal of fuel subsidy and subsequent the liberalization of the exchange to be determined by market forces, the Central Bank of Nigeria (CBN) has fixed the official exchange rate for imports at N589 per Dollar and this has led to increase of about 45% on import duty of vehicles as well as other consignments.

He further stated that the PTML terminal in Lagos has also signified intentions to increase storage charges by 45%. “All these policies are affecting the Customs Brokers who are the ones generating the revenue,” he said.

The ANLCA Acting National President is appealing to the Federal government to grant 1% out of their annual revenue collection to the FG as a MITIGANT incentives to mitigate and lessen the sufferings of Customs Brokers in the Country.

He said, “Due to the happenings by the new government of President, Bola Ahmed Tinubu GCFR, which has removed fuel subsidy, the foreign exchange official rate which is now to be determined by the market forces (willing buyers and willing sellers), and that on Friday the CBN has changed our rate to N589 to a Dollar and by this, the import duty on vehicles has increased by about 45%. While that of other consignments has also increased.

“Just this morning, PTML terminal has shown intention to increase her storage charges by about 45%. I want to officially request for MITIGANTS from the Federal government for Customs Brokers. This becomes imperatives to ameliorate the sufferings of Customs Brokers in Nigeria.

“This MITIGANTS should be in form of incentives like giving us 1% of money generated annually and other things to cushion the effect of this policies. I shall unveil other MITIGANTS that I think will be useful to us next week “. Farinto said.

He further explained that the 1% revenue generated to be given to licensed customs agents. Also that the Federal government needs to look at the factors of calculating the Value Added Tax (VAT) of 7.5%.

“It is not wrong but tantamount to taxing taxes, that value should only be calculated on Imports duty. And if possible the 7% Ports Development Levy be abrogated because it has long overdue, as it has overstayed its usefulness”.