Lagos Chamber of Commerce and Industry (LCCI)
The Lagos Chamber of Commerce and Industry (LCCI) has called for
the review of import duty and Customs administration as part of the
ongoing tax reform towards enhancing ease of doing business in the
country.
the review of import duty and Customs administration as part of the
ongoing tax reform towards enhancing ease of doing business in the
country.
Muda Yusuf, Director-General of LCCI, made the call in an interview with the News Agency of Nigeria (NAN) on Monday in Lagos.
According to him, the import duty on many inputs for production and
investments is high, making investment difficult across sectors.
investments is high, making investment difficult across sectors.
Mr Yusuf noted that high import duty has led to the escalation of
smuggling activities and loss of customs revenue, leading to loss of
thousands of maritime sector jobs to neighbouring countries.
smuggling activities and loss of customs revenue, leading to loss of
thousands of maritime sector jobs to neighbouring countries.
“The outrageous import duty on vehicles is a major factor responsible
for the current high transportation costs in the country, and this
adversely impacts all sectors and it is a major driver of inflation,” he
said.
for the current high transportation costs in the country, and this
adversely impacts all sectors and it is a major driver of inflation,” he
said.
Besides, he said issues around valuation and classification of goods
by the customs have become a major concern for investors in the economy.
by the customs have become a major concern for investors in the economy.
“The administration of tariff at the various ports and border posts leaves much to be desired.
“There is a great deal of arbitrariness as the customs strives to
meet revenue target, which is the principal performance indicator for
the agency.
meet revenue target, which is the principal performance indicator for
the agency.
“It is thus necessary to incorporate import duty and customs
administration reforms into the ongoing tax review process,” he said.
administration reforms into the ongoing tax review process,” he said.
According to him, dispute resolution system on import duty and
valuations should reflect the principles of fairness in all
ramifications.
valuations should reflect the principles of fairness in all
ramifications.
“The situation now is that the customs is the accuser and the judge;
which is not in consonance with the basic principles of justice
delivery.
which is not in consonance with the basic principles of justice
delivery.
“The customs should not be a judge in a case where there is dispute between the customs and an importer,” he said.
Mr Yusuf stressed that issues of multiple taxation levied on investors
by the three levels of government should also be addressed within the
framework of the current tax review.
by the three levels of government should also be addressed within the
framework of the current tax review.
“We need to bring our tax system in consonance with the key
principles of equity, convenience, accountability, certainty and the
economics of collection,” he said.
principles of equity, convenience, accountability, certainty and the
economics of collection,” he said.
NAN reports that the Federal Government is presently undertaking
policy reforms and amendment bills to improve the nation’s tax system
toward enhancing ease of doing business in the country.
policy reforms and amendment bills to improve the nation’s tax system
toward enhancing ease of doing business in the country.
(NAN)
