By Merit Ibe
The Lagos Chamber of Commerce and Industry (LCCI) has asked the new administration to halt the revenue leakage of more than $ 5 billion paid as freight to foreign ship owners.
While commending the government on some of its recent measures to stop wasteful spending, President of the chamber, Dr Michael Olawale-Cole noted that the Chamber’s perspectives are in tandem with the government’s need to check the over-bloated and inefficient workforce of the Ministries, Departments and Agencies (MDAs). Regarding the merger, Olawale-Cole sid the chamber was willing to nudge the government to embrace critical stakeholders’ engagement and consultation, which will provide further insights into charter-specific responsibilities and possibilities.
On the proposed merger of the Nigerian Maritime Administration and Safety Agency (NIMASA), Federal Inland Revenue Service (FIRS) and Nigeria Customs Services (NCS) into the Nigerian Revenue Services (NRS), the LCCI boss said the chamber supports Government’s desire to curb the rising cost of governance, its readiness to declare a state of emergency on revenue generation and its resolve to tackle them headlong.
“While we commend the Government on some of its recent measures to stop wasteful spending, we urge the Administration to halt the revenue leakage of more than $ 5 billion paid as freight to foreign ship owners. The Chamber’s perspectives are in tandem with the Government’s need to check the over-bloated and inefficient workforce of the Ministries, Departments, and Agencies (MDAs). Regarding the merger, we are willing to nudge the Government to embrace critical stakeholders’ engagement and consultation, which we hope will provide further insights into charter-specific responsibilities and possibilities.”
The chamber commended the Government on the recently released Executive Orders, which, by and large, will curb arbitrary taxation policies.
” The Orders: The Finance Act (Effective Date Variation) Order 2023, Customs Excise Tariff (Variation) Amendment Order, 2023, Suspension of the Five-Percent Excise Tax (Telecommunications Services) Order, and the Excise Duty Escalation (locally manufactured products) Order, 2023 are most welcomed.
“While the Finance Act 2023 defers the commencement date of the changes contained in the Act from May 23, 2023, to September 1, 2023, the Excise Tariff (Variation) Amendment Order shifts the date for the commencement of the tax changes from March 27, 2023, to August 1, 2023. These new dates align with the 2017 National Tax Policy, which provides a 90-day minimum advance notice.
“The LCCI notes with satisfaction that the Executive Orders demonstrate the listening ear tendency of Your Excellency. They further highlight the Administration’s readiness to strengthen due process, willingness to follow established path, and readiness to uphold collective agreements while at the same time taking into serious consideration their economic growth impacts in general and the organized private sector in particular. They will also lessen the current hardship being faced by the households. With the new dates, the LCCI believes that they will afford the affected sectors enough time to rise to the expectations of the Acts.
Presidential Committee on Fiscal Policy and Tax Reforms
‘Further, the recent appointment of Taiwo Oyedele as Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms established to remove barriers impeding business growth in Nigeria is decisive affirmative action. It is clear by this pronouncement that the President recognizes the importance of a sound fiscal policy environment and an effective taxation system for the functioning of the Government and the economy.
The committee’s primary objective would be to enhance revenue collection efficiency, ensure transparent reporting, and promote the effective utilization of tax and other revenues to boost citizens’ tax morale, foster a healthy tax culture, and drive voluntary compliance.
‘Your Excellency, it would be important for the committee to focus on expanding the tax net to avoid overburdening existing taxpayers. Other issues of revenue leakages, such as oil theft, should also be properly addressed. These would ensure that the Government can earn more revenue and that there will be less dependence on internal and external borrowings to fund the budget.
These efforts will improve Nigeria’s revenue profile and create a more conducive and internationally competitive business environment.
“The Organized Private Sector
LCCI, as the voice of the organized private sector, has the capacity, pedigree, and stature to support the Government in facilitating the implementation of policy initiatives.
The issues presented herewith have both policy and institutional implications. We are aware of the many challenges facing our country currently, and we commend all that the Government is doing to resolve these issues and stabilize the economy. We only crave to see more results through efficient and timely implementation.
“The Chamber, under my leadership, is available to work with the Presidency with respect to Policy Formulation and Implementation in the direction of a more robust economy for the nation. We look forward to seeing more policy interventions to promote an enabling environment for the private sector to thrive.”