The minister of finance, budget and national planning Hajiya Zainab Ahamed Shamsuna has said that the federal government lost N1.3 trillion to import duty and VAT waivers and other incentives in the past eight years.
The minister disclosed this during a one day sensitization seminar on Automation of the Import Duty Exemption Certificate (IDEC) processes organised by the Ministry in collaboration with the Nigeria Customs Service in Kano.
Ahmed who was represented by the Kano State commissioner for Finance, Shehu Na’allah while giving the breakdown said between 2011 and 2015 the government lost N1.024 trillion while between 2017 and 2019, it lost N342 billion to waivers.
According to her, “For the records, between 2011 and 2015, government conceded about N1.024 trillion through the grant of only four types of incentives namely: Import duty waivers/concessions/grants, N503.5 billion; VAT waivers/concessions/grants, N227.7 billion; Pioneer status, non-oil companies, N73.5 billion and Pioneer status PPT on oil companies, N219.5 billion.
“Approximately N341.9 billion worth of waivers was granted from August 2017 to August 2019. The scope of such requests are expanding; hence the need to have in place modern technology to drive its administration.
“Up until March 2020, we processed the grant of the IDEC incentives manually. This process was quite cumbersome, tedious, time consuming and it was beset with undue human interface with its attendant challenges.”
She said the Automated IDEC portal will deliver, and it is already delivering the benefits among others, in line with the Ministry’s Strategic Revenue Growth Initiatives (SRGI).
“The federal government under the leadership of President Muhammadu Buhari is keen on promoting and sustaining transparency and efficiency in delivering services in the public sector domain and the organized private sector,” the minister stated.
Earlier, the comptroller general of Customs, Col. Hameed Ali (Rtd) represented by the commandant, Customs Training School, Kano, Lawrence Banye said the automation will not only block revenue leakages with its attendant positive effects, but also promote trade efficiency, boost investors’ confidence, transparency and indeed ease of doing business.
“Interestingly, the just approved E-Customs project that signals the beginning of end-to-end automation of Nigeria Customs Service processes and procedures will usher a new regime of total automation of all trans-border trade activities.
“Indeed, trade is being revolutionised through modernization and policies that create enabling environment for business to thrive,” Ali said.
– Leadership