- FG Cuts Customs Projected Revenue by N49bn
The ban on vehicle importation through the land borders as well as the review of other fiscal items may have forced the Federal Government to reduce the projected revenue from the Nigeria Customs Service by N48.8bn in the 2017 fiscal period.
The N48.8bn cut in projected revenue from the NCS is part of the proposals to be made by President Muhammadu Buhari when he submits the 2017 budget proposals to the National Assembly on Wednesday.
Top officials in the Budget Office confided in our correspondent that based on the revenue projections of the Federal Government for next year, the NCS was expected to generate a total sum of N277.56bn.
In the 2016 fiscal period, the service was given a revenue target of N326.4bn.
One of the officials said the drop in projected revenue of the Customs by the Federal Government was necessitated by the fact that less emphasis was being placed on importation.
For instance, he said while the revenue from the Customs was predicated on the cost insurance and freight value of imports, as well as other applicable tariffs, the current economic climate had necessitated a review of some of the policies affecting these fiscal items.
He listed some of the policies that would affect Customs revenue to include effects of the Central Bank of Nigeria’s recent monetary policies; reduction in levies due to the introduction of Common External Tariff from 2017-2019; and gradual removal of the Import Adjustment Tax.
He gave other factors that would affect the Customs revenue next year as the expected decrease in the annual average duty rate; expected increase in import CIF as a result of new strategic plans in the NCS; and lower receipts from import duty on vehicles following the ban in importation of vehicles through the land borders.
Import duty from vehicles is one of the highest tariff line in terms of revenue generation by the Customs
The source said with the strategies of the Federal Government in reducing the level of rice imports, coupled with the foreign exchange restriction placed on the importation of some other items, it would not be fair to still retain the revenue projections of the service.
The official said the government would continue to promote policies that would deliver a more diversified economy, and work at strengthening the linkages in the productive sectors of the economy.
The objective, according to him, is to increase the value-addition in the non-oil sectors, as well as promote exports capable of generating substantial foreign exchange.