Freight forwarders in Kano have joined voice against the introduction of the four per cent Free-on-Board (FOB) charge for Nigeria Customs Service (NCS) services maintenance.
The stakeholders in the clearing and forwarding industry worried that the introduction of the additional tax on import and export goods would worsen the country inflation rate.
The stakeholders expressed the concen on Wednesday during sensitization workshop for agents on the implementation of the four per cent FOB, organized by Nigeria Customs Service (NCS) Kano/Jigawa Area Command.
The Customs recently announced the suspension of the planned implementation of a four per cent Free-on-Board (FOB) charge on imports, as outlined in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023.
The introduction of the new tax followed the expiration of contract agreements with service providers such as Webb Fontaine, previously funding the FOB through one per cent Comprehensive Import Supervision Scheme (CISS).
The Customs Area Controller, Kano/Jigawa Commander, Comptroller Dalhatu Abubakar, said the suspension of the implementation was to widen stakeholders engagement and sensitization on the policy.
The managing director, AY Gamji Nigerian Limited, Mustapha Gamji, insisted that Nigerians do not need the four per cent FOB because of its negative consequences to the larger economy.
Gamji maintained that such tax when implemented would eventually affect cost of production and subsequent impact on cost of finish products.
On his part, Mohammad Yakubu, a licensed trade agent though applauded the suspension of the implementation but called for drastic reduction from four per cent back to one per cent.
“We appreciate NCS for suspending the 4 per cent because of the negative impact. It is happening suddenly and many of the agent did not prepared for it so the suspension will enable us prepare our customers mind that it is from the federal government. However, we urged the Federal government to consider reducing the figure,” Yakubu noted.
Responding to the concerns, the comptroller said the engagement with the stakeholders was intended to ventilate grey areas and accommodate public reaction on the new tax. He pledged the NSC’s readiness to improve the services.
