Economy

Operators Fault Customs N1 Trillion 2017 Revenue

Published

7 years ago

December 29, 2017

Operators Fault Customs N1 Trillion 2017 Revenue Claim

Stakeholders in the maritime sector have picked holes in claims by the Nigerian Custom Service (NCS) that it raked in N1trillion revenue in 2017, stressing that most of the assumptions were not correct.

The NCS Public Relations Officer, Mr Joseph Attah, had while addressing journalists in Abuja last week, announced that the service recorded its highest revenue collection ever of over N1 trillion as against N770 billion target set for 2017.

But some experts, who spoke on the matter said there is an error in the figures, citing foreign exchange differential and the addition of waivers not granted as possible reasons the NCS arrived at the said figure.

For Instance, the National President of National Council of Managing Directors of Customs Licensed Agents, (NCMDCLA), Lucky Amiwero said when the increase in foreign exchange is factored in the amount realised by the NCS was far less than they are claiming.

According to him, “The problem it has to do with foreign exchange. In 2015 when the naira was exchanging for between N150 to N180 to a dollar, the NCS recorded a revenue of less than N950 billion, the exchange rate contributed to it.

“Also, there is a lot of valuation lifting at the nation’s ports across the country, most of the job attracts extra value which nobody contests. Customs cannot put waivers as revenue collection. Waivers are used to encourage investment and encourage local industry to grow.”

Others, who spoke on the condition of anonymity, said the Customs could not have recorded the N1.1 trillion, adding that the numbers were made up for it look like the service was doing very well in revenue collection.

Attah had said that the NCS recorded the highest revenue collection ever of N1,012,259,006,779.74 with five more working days to the end of 2017.

“This spectacular performance in revenue collection shows N241,685,276,289.74 over the N770,573,730,490 target for the year and well above the N898,673,857,431.07 collected in 2016. “This is despite the economic recession experienced earlier in the year, with low volume of imports and restriction placed on 41 items from accessing forex.

“The Comptroller-General of Customs (CGC), Col. Hameed Ali(rtd), undertook some strategic measures in terms of restructuring and repositioning the service for efficient service delivery which resulted in this historic revenue figure from the service this year,” Attah said.

He said that for Ali to achieve this feat, he took some measures like strategic redeployment of officers, re-training of the operatives of Customs Intelligence Unit were done, among others.

Attah said that the NCS strived to deliver, adding that sometimes even at the risk of sustaining serious injuries or even death.

“Sadly in the process of enforcing the laws, six officers fell in the line of duty this year,’’ the spokesman said.

He said that the Customs boss had directed sustained onslaught against smugglers, especially at this festive period.

Attah, however, noted that in the spirit of the season, all stakeholders were enjoined to reflect on the value of patriotism and resolved to avoid all forms of smuggling.

“It is clear that given the right leadership and better support from Nigerians, NCS will continue to play a more pivotal role in the security and economic well-being of the nation, ” he said.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Economy

FIRS VAT Revenue Surges to N1.56 Trillion in Q2 2024 Amid Economic Struggles

Published

2 days ago

September 10, 2024

Samed Olukoya

The Federal Inland Revenue Service (FIRS) generated N1.56 trillion in Value Added Tax (VAT) in the second quarter (Q2) of 2024, according to the latest report from the National Bureau of Statistics (NBS).

This represents an increase of 9.11% compared to the N1.43 trillion reported in the first quarter of 2024.

A breakdown of the report showed that local VAT payments accounted for N792.58 billion of the total amount generated, while foreign VAT payments stood at N395.74 billion, and import VAT contributed N372.95 billion.

A quarterly analysis of the report revealed that human health and social work activities recorded the highest growth rate with 98.44%. This was followed by agriculture, forestry, and fishing with 70.26%, and water supply, sewerage, waste management, and remediation activities with 59.75%.

On the other hand, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –46.84%, followed by real estate activities with –42.59%.

Sectoral analysis showed that the manufacturing sector contributed the most at 11.78%. Information and communication and mining and quarrying contributed 9.02% and 8.79%, respectively.

Nevertheless, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by activities of extraterritorial organizations and bodies with 0.01%, and water supply, sewerage, waste management, and remediation activities and real estate services with 0.04% each.

On a year-on-year basis, VAT collections grew by 99.82% from Q2 2023 despite ongoing economic challenges.

Nigeria’s inflation rate remains well above 30 percent, while new job creation is almost nonexistent.

Other key economic factors, such as investor sentiment, the purchasing managers’ index, and consumer spending, remain weak amid intermittent protests by citizens demanding improvements in quality of life.

Economy

Nigeria Sees 9.11% Increase in VAT Revenue, Generating N1.56 Trillion in Q2 2024

Published

3 days ago

September 9, 2024

Investors King

The federal government in the second quarter of 2024 generated a total of N1.56 trillion from Value Added Tax. This is a 9.11 percent increase from the N1.43 trillion in Q1 2024.

According to the National Bureau of Statistics report, local payments recorded were N792.58 billion, foreign VAT payments were N395.74 billion, while import VAT contributed N372.95 billion in Q2 2024.

“On a quarter-on-quarter basis, human health and social work activities recorded the highest growth rate with 98.44%, followed by agriculture, forestry and fishing with 70.26%, and water supply, sewerage, waste management and remediation activities with 59.75%,” NBS reported.

“On the other hand, activities of households as employers, undifferentiated goods and services producing activities of households for own use had the lowest growth rate with 46.84%, followed by Real estate activities with 42.59%.

“In terms of sectoral contributions, the top three largest shares in Q2 2024 were
manufacturing with 11.78%; information and communication with 9.02%; and Mining and quarrying with 8.79%.

“Nevertheless, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by activities of extraterritorial organisations and bodies with 0.01%; and Water supply, sewerage, waste management and remediation activities with and real estate services 0.04% each.

“However, on a year-on-year basis, VAT collections in Q2 2024 increased by 99.82% from Q2 2023.”

Economy

Finance Minister Denies VAT Hike, Confirms Rate Remains at 7.5%

Published

3 days ago

September 9, 2024

Investors King

Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, on Monday, debunked reports doing the rounds that the rate for Value-Added Tax (VAT) has been upwardly adjusted to 10% from 7.5%.

The Minister, in a statement signed by him, affirmed that VAT rate as contained in relevant tax laws and chargeable on goods and services remains 7.5%.

“The current VAT rate is 7.5% and this is what government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.

“The tax system stands on a tripod, namely tax policy, tax laws and tax administration. All the three must combine well to give us a sound system that gives vitality to the fiscal position of government.

“Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth, reduces poverty as well as makes businesses to flourish.

“The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that government is out to make life difficult for Nigerians. That is not correct. If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive.

“In fact, it is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs and taxes on rice, wheat, beans and other food items.

“For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able,” Edun said