Stakeholders in the agricultural and manufacturing sector have advised the Federal Government against dropping the tariff on imported goods and commodities.
The stakeholders expressed this view at the Consultative Forum for the Review of Common External Tariff (CET) from 2008-2012, organised by the Budget Office of the Federation and the Ministry of Finance in Abuja.
Stakeholders in the agricultural and manufacturing sector have advised the Federal Government against dropping the tariff on imported goods and commodities.
The stakeholders expressed this view at the Consultative Forum for the Review of Common External Tariff (CET) from 2008-2012, organised by the Budget Office of the Federation and the Ministry of Finance in Abuja.
Speaking at the occasion, Dr Kola Jamodu, the President of the Manufacturers Association Nigeria (MAN), said that that reducing tariff on imported goods would not allow the local manufacturer to grow and appealed to the Federal Government to initiate policies that would favour the local manufacturer.
“We cannot survive at this stage of our growth as a nation without tariff. But it must be fashioned to ensure that local manufacturers grow.
“I hope the review will address some of the challenges we face as manufacturers.’’
In his remarks, Mr Okey Ikoro, the Chairman, Vegetable Edible Oil Producers Association of Nigeria (VEOPAN), recalled that the ECOWAS Trade Libralisation Scheme (ETLS) was introduced to encourage trade among member states.
He noted that it was intended to facilitate free movement of goods produced within the region at no additional duty from one country to another.
He, however, noted that some rules were put in place to discourage exploitation of the ETLS through importation of goods from outside the region and exporting same to another country within the region.
Ikoro explained that the fact that the country had placed 35 per cent duty on the importation of palm oil and five per cent on the Cote d’ivoire oil, encouraged abuse of the ETLS.
“This automatically encourages the abuse of ETLS and rules of origin as palm oil is now imported into Cote d’ivoire.
“And documents are falsified to state its origin as Cote d’ivoire and the ship is sent to Nigeria under zero duty,’’ Ikoro said.
The objective of the ETLS is to establish a Customs Union among all member states with a view to total elimination of customs duties and taxes.
It would also remove non-tariff barriers and establish a Common Customs External Tariff (CCET) to protect goods produced in member states.
In his remarks, Dr Bright Okogu, the Director-General, Budget Office of the Federation, said that tariffs and other fiscal policy instruments could be used as effective tools for trade facilitation and investment promotion, among others.
He said that the Federal Government had demonstrated commitment to using tariff policy to promote the industrialisation and development of sectors with high growth potentials such as agriculture.
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