By Disun Amosun
As the Public Hearing on Tax Reform Bills came to a close, former President, Nigerian Bar Association, Yakubu Chonoko Maikyau, has urged the National Assembly to ensure that the proposed Tax Reform Bills serves the interests of Nigerians and make their lives better.
He made the call in the remark at the Public hearing held by the House of Representatives Committee on Finance on Friday.
The Bills include; Nigerian Tax Bill, Nigeria Tax Administration Bill. Joint Revenue Board Bill; and the Nigeria Revenue Service Bill
He said “Nigerians expect that arising from these bills will be a regime that will recognize their sacrifices and also they will have an opportunity to see the sacrifices that they have made in being a part of this process where they are asked to recognize their sacrifices to make contributions into the development of this economy.
The Comptroller General (CG),Nigeria Customs Service (NCS), Adewale Adeniyi, in his contribution, stated before the Committee that companies operating in Nigeria’s Free Trade Zones are violating the law governing their operations.
He alleged that the companies are going into Customs areas where extant tax laws are operational to conduct their businesses.
Adeniyi was called to make clarifications on claims by NACCIMA earlier Thursday that tax and levies allegedly being imposed on companies operating in Free Trade Zones by the Nigerian Customs.
He said, “The sticky issue over the years has been the compliance of free trade zones operators with the provisions of the law. Whereas, the law allows them to import every manufacturing input they need, 100%. Sometimes, including things that are prohibited into the customs territory.
“In fact, a lot of those incentives were given to them for them to manufacture. But the initial incentives were for them to export everything that they import inside this free zone. But from time to time, I think they started to develop loan proofs for the local markets. And they felt that they can’t trade anything from the local markets.”
In his remark, the Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele commended the House Committee on Finance for conducting the public hearing in order to allow Nigerians to contribute in having a law that will transform the country’s tax laws and improve economic activities.
Also speaking, the Chairman, Federal Inland Revenue Service (FIRS), Zach Adedeji said, the engagement of Nigerians on the Tax Reform Bill through the Public hearing has given Nigerians the opportunity to understand the Bills.
In a presentation, as the Nigerian Investment Promotion Council (NIPC) represented by Mrs Uchenna Okonkwo stated that, contrary to the provisions of Section 167 (3), the “NIPC as the processing Agency of the incentives and in the exercise of its statutory mandate of recommending priority sectors/products for incentive should be empowered under this Act to make recommendations to the President for amendments of the list”.
The Association of Bureaux De Change Operators of Nigeria (ABCON) which’s presentation was delivered by the Chairman, North Central Zone, Thomas Okoye expressed reservations over the impacts of some provisions of the Bills on their transactions.
The Association noted that, coupled with the directive of the Central Bank of Nigeria (CBN) on the astronomical increase of the Capital Base of Bureau De Changes (BDCs), further taxes will strangle their business and push many out which will cause unemployment in the country.
