Tinubu’s tax waivers on staple foods, a good omen
The decision by President Ahmed Tinubu’s Renewed Hope Administration to remove taxes on staples foods items like rice, maize, beans and other grains will assist in depreciation of the inflation in the country.
The development will reduce pressure on the naira by discontinuing the payment of taxes and levies in foreign currency and prioritising the procurement of Made in Nigeria goods and services by all levels of government.
Precisely, the Federal Government has announced the suspension of duties, tariffs, and taxes on some essential food items imported through land and sea borders.The Minister of Agriculture and Food Security, Abubakar Kyari, disclosed this at a briefing in Abuja yesterday.
The listed food items, which include maize, wheat, husked brown rice, and cowpeas, will enjoy a 150-day Duty-Free Import Window. He added that the move was part of the Presidential Accelerated Stabilization and Advancement Plan, which is aimed at achieving food security and economic stability in the country.
The minister stated that the government had been working tirelessly to address the food inflation crisis, which had seen prices skyrocket to unprecedented levels.
He assured Nigerians that the government was committed to achieving food security and ensuring that no citizen went to bed hungry.
He said, ”The federal government has announced a 150-day Duty-Free Import Window for Food Commodities, suspension of duties, tariffs and taxes for the importation of certain food commodities (through land and sea borders). These commodities include maize, husked brown rice, wheat and cowpeas.”
According to him under this arrangement, imported food commodities will be subjected to a Recommended Retail Price (RRP).
“I am glad to reiterate that the Government’s position exemplifies standards that would not compromise the safety of the various food items for consumption.In addition to the importation by the private sector, the Federal Government will import 250,000MT of wheat and 250,000MT of maize. The imported food commodities in their semi-processed state will target supplies to the small-scale processors and millers across the country.”
The Minister also said the Federal Government had inaugurated the Renewed Hope National Livestock Transformation Implementation Committee to develop and implement policies that prioritise livestock development and align with the National Livestock Transformation Plan.
Dissecting into the decision by Mr. President, the effect lies on reducing the strain on households across the country, which has been exacerbated by the already fragile economy. Addressing the concerns of investors in the real economy..Reducing the cost of doing business for investors, reducing food inflation and Increasing tax compliance by consolidating all consumption taxes into a single VAT system. It enhances less administrative costs by consolidating all consumption taxes into a single VAT system.
Another critical area the federal government must focus on is the transport sector. To address reduction in transport fares, Tinubu can subsidise fuel prices thereby reducing fuel prices to lower transportation costs.
The government should invest in efficient transport systems: Encourage modern, fuel-efficient vehicles and public transport infrastructure and regulate transport fares by establishing fare controls to prevent price gouging.They Should promote alternative transport modes: Encourage walking, cycling, and public transport use. Support transport cooperatives: Empower transport unions to negotiate better fares.
Improving road infrastructure to reduce travel times and costs by maintaining roads and encouraging competition by fostering a competitive transport market to drive fares down.Offering of subsidies or discounts for vulnerable groups.
The Minister of transport should as a matter of urgency modernise and formalise the transport sector to reduce inefficiencies and engage Public-private partnerships to Collaborate with private operators to improve services and reduce costs.
By implementing these measures, Tinubu can help reduce transport fares, making transportation more affordable and accessible for Nigerians.
