For the umpteenth time, the Centre for the Promotion of Private Enterprise (CPPE) has decried the high and volatile exchange rate for import duty assessment, which is putting investments in the country at risk and weakening investors’ confidence.
Worried over government delay to address the problem of prohibitive and unpredictable exchange rate for cargo clearance, Director of the Centre, Muda Yusuf, believes that is a major policy adjustment needed to complement measures which will address the current cost-of-living crises in the country.
He stated that the high and volatile exchange rate for import duty assessment was fueling the already high inflation, increasing production and operating costs for manufacturers and other businesses, worsening the cost-of-living crisis, putting maritime sector jobs and investments at risk and weakening investors’ confidence.
“There is also the added heightened risk of cargo diversion to neighbouring countries and smuggling which could jeopardize the realization of customs revenue target.
“This situation additionally creates serious competitiveness challenges for ethical and compliant investors in the economy because of their relatively elevated production and operating costs.”
