The Lagos Chamber of Commerce & Industry (LCCI) has called on President Bola Tinubu to ensure that 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) does not impede the ease of doing business.
The Chamber stated this in a letter to the President tagged ‘Representation of the Organized Private Sector by the Lagos Chamber of Commerce & Industry’ and made available to Nairametrics.
The letter signed by Dr Michael Olawale-Cole, President/Chairman of the Council of LCCI said:
- “We note with cautious concern 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).
- “We understand the Government’s arguments on the proposed merger, which borders on improving efficiency in collecting all direct and indirect taxes and levies”.
- “The LCCI supports the 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”.
- “The Government should ensure that implementing the proposed merger does not impede the ease of doing business. It would also be necessary for the Government to ensure that the fallout of the proposed merger, such as staff rationalization, realignment of operating structure, accountability, and transparency, are adequately dealt with,” the Chamber said.
The LCCI noted that while the Chamber commends the Government on some of its recent measures to stop wasteful spending, it urges 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 said.
LCCI Commends Government on Executive Orders to Curb Arbitrary Taxation
LCCI commended the Government on the recently released Executive Orders, which, by and large, will curb arbitrary taxation policies.
- “It noted that 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,” LCCI noted.
The LCCI noted 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,” the Chamber said.
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