In Nigeria, there are stakeholders in the maritime industry who see nothing wrong in introducing high duties on luxury items. However, they argue that to generate high revenue from the sector, government needs to reduce duties on other essential goods to check rising prices, and improve on its foreign exchange policy
At this time of economic recession, the federal government is exploring new revenue options for the country, and the nation’s maritime industry is one where it seems revenue can come from. This is even more so with many adjudging maritime as next to oil in terms of revenue generation.
Nigeria Customs Service (NCS) generated about N898.67 billion for the whole year 2016 as against its target of N1trillion. The service had recorded N903 billion for 2015. The Comptroller-General of the Service, Col Hameed Ali (rtd), had made it clear that the prevailing CBN policy on forex as it affects importers on 41 items list was responsible for the inability of the Customs to meet its revenue target.
However, this year, it appears to be the turn of the Finance Ministry to increase revenue generation from the maritime sector. But many industry stakeholders believe that this may be a miscalculation on the part of government, except on luxury goods.
Towards the end of last year, the finance ministry issued circular raising duties on luxury goods, ranging from 20 per cent to 60 per cent. The announcement had come from the Finance Minister, Mrs Kemi Adeosun, who said that President Muhammadu Buhari had already signed the new tariff regime.
Part of the circular reads: “This is to confirm that Mr. President has approved the 2016 fiscal policy measures made up of the Supplementary Protection Measures (SPM) for implementation together with the ECOWAS CET 2015 – 2019 with effect from 17th October, 2016. Consequently, all transactions prior to the effective date of this circular shall be subjected to the tariff rates applicable before the coming into effect of this 2016 fiscal policy measures.”
The Customs revenue target for this year was yet to be released as at the time of filing this report. But it could be between N1trillion to N1.2trillion. With the increase in the tariff on luxury items, among others, there is no doubt that the service may meet its target this time
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