The Federal Government has announced plans to introduce tax breaks and import duty suspensions to reduce increasing inflation in country. This was revealed by Mr Wale Edun, Minister of Finance and Coordinating Minister of the Economy, during an exclusive interview with AIT’s Money Line.
According to Mr. Edun, these are some components of the Inflation Reduction Act that will soon be signed into law by the president. One of its objectives is to lower production costs for businesses that have been hit hard by depreciation of Naira among other policies initiated by this administration.
Key points of Inflation Reduction Act Include:
- – Tax cuts for companies that employs more staff
- – Suspension of import duties on certain goods
- – Exemption from customs duties and lowering of tariffs
Mr. Edun emphasized that the fiscal policies aim at encouraging more job creation and lower production expenses for companies and businesses alike.
He also mentioned that about $600 million is spent every month by the government on importing petrol, noting that it is because neighbouring countries benefiting from Nigeria’s fuel imports.
Additionally, the Minister revealed plans to keep food cheap, which include:
- – Distribution of grains from strategic food reserves
- – Controlling imports of food items while ensuring that home-based supplies are exhausted before importation.
Mr. Edun assured that these plans do not threaten local farmers, with auditors in place to verify the utilization of local produce.
The Federal Government has not approached the Central Bank of Nigeria (CBN) for Ways and Means advances, but rather used market instruments to alleviate debt burden while ensuring economic stability.
The aim of the Inflation Reduction Act is to bring down prices, stabilize currencies and lower interest rates, creating a conducive environment to encourage investment and creates more jobs.
