LCCI Expresses Concern Over Proposed Merger Of NIMASA, FIRS, NCS

The Lagos Chamber of Commerce and Industry (LCCI) has expressed concern over 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) by the Federal Government.

LCCI said that while it understands the Federal Government’s arguments on the proposed merger, which borders on improving efficiency in collecting all direct and indirect taxes and levies, the merger should not impede the ease of doing business.

In a letter to President Bola Tinubu, dated July 10, 2023, and signed by its president, Michael Olawale-Cole, LCCI asked 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 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,” LCCI said in the letter, obtained by THE WHISTLER on Tuesday.

“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.”

On the recent Executive Orders bothering on 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, the Chamber said these would curb arbitrary taxation policies.

“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,” LCCI stated.

Tinubu recently appointed Taiwo Oyedele as Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, established to remove barriers impeding business growth in Nigeria.

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.

The Chamber noted that the committee should focus on expanding the tax net to avoid overburdening existing taxpayers, adding that 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,” it said.

The Chamber also expressed its willingness to work with the presidency with respect to policy formulation and implementation in the direction of a more robust economy for the nation.