Regulatory Alerts2012-02-21 | TED/FEM/FPC/GEN/01/005Fiscal Policy Measures 2012
The Nigerian Trade and Exchange Department has announced new fiscal policy measures for 2012. Effective from January 31st, zero percent duty will be applied to agricultural machinery and power sector equipment. From March 31st, importing cassava flour will be prohibited, encouraging its use in bread-making, with bakers receiving a 12% corporate tax incentive rebate when using 40% cassava blend within 18 months. Zero-duty equipment for cassava flour processing is also allowed. From July 1st, wheat and rice will attract various levies and duty rates to encourage local production and consumption, with concessions granted on a sectoral basis.
TRADE & EXCHANGE DEPARTMENT
| 09 46237804 | |
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| Tel ...................... | 09 46237802 |
| Fax : ...... |
E-mail address:ted@cenbank.orq TED/FEM/FPC/GEN/01/005 February 20, 2012
To: All Authorised Dealers And The General Public Fiscal Policy Measures 2012
This is to inform all Authorised Dealers that the Federal Government has approved the release of the following Fiscal Policy Measures for 2012: With effect from 31st January, 2012: Agricultural machinery and equipment shall attract zero per cent (0%) i) duty in order to support the development of agricultural sector; ii) Equipment and machinery in the power sector shall attract zero per cent (0%) duty, to create a robust power sector and provide an enabling environment for investment.
With effect from 31st March, 2012: Importation of cassava flour shall be prohibited, to encourage the i) substitution of high quality cassava flour for wheat flour in bread-making; Corporate tax incentive rebate of 12% shall be enjoyed by Bakers on ii) attainment of 40% cassava blend within a period of 18 months; All equipment for processing cassava flour for composite flour blending iii) shall be imported duty free.
In order to encourage the purchase and utilisation of locally produced commodities, the under-listed measures are hereby introduced with effect from 1st July, 2012: Wheat flour shall attract a levy of 65% and 35% duty rate; i) ii) Wheat grain shall attract a levy of 15% and 5% duty; Husked brown rice shall attract a levy of 25% and duty rate of 5%; iii) Imported polished rice shall attract a levy of 40% and duty of 10%.
iv) Concessions: In order to expand domestic production, boost exports, generate employment and create a level playing field, concessions and waivers shall be granted only on sectoral basis.
All Authorised Dealers are required to bring to the attention of their customers these measures for strict compliance.
WY was on BATARI MUSA DIRECTOR TRADE AND EXCHANGE DEPARTMENT