By Nafiu Toyin Abdulqadri.
Former Senate President, Dr. Abubakar Bukola Saraki, has criticized President Bola Ahmed Tinubu’s new tax regime, particularly the 4% customs administration charge on Free On Board (FOB) value. Saraki argues that this charge, which translates to N2.84 trillion annually, is excessive and unnecessary, given the Customs Service’s existing budget and incentive structure.
Saraki questions the logic behind the new fee, pointing out that it will be passed on to consumers, further straining the budgets of millions of struggling households. He also notes that the fee is not limited to luxury goods, but applies to all imports, including raw materials for industries with already low duty rates.
The former Senate President emphasizes that this policy contradicts the government’s stated goal of promoting ease of doing business. He urges the government to reconsider the policy and put it on hold immediately, given the current economic challenges facing Nigerians.