Maritime Report

February 27, 2019

30% tax holiday: We have helped move smugglers to legitimate economic activities – Customs Boss

30% tax holiday: We have helped move smugglers to legitimate economic activities – Customs Boss

The CAC, Comptroller Shoboiki (Mrs.) and top officer of the Command (right), while handing over the seized drugs to NAFDAC officials.

By Godfrey Bivbere

Nigerian Customs Service, NCS, is now counting gains of its anti-smuggling public enlightenment and community relations initiatives, saying that at border communities around Seme, South West Nigeria, smugglers have started abandoning the illegal trade.

The CAC, Comptroller Shoboiki (Mrs.) and top officer of the Command (right), while handing over the seized drugs to NAFDAC officials.

Customs Area Controller, CAC of Seme Border Command, Garba Uba Mohammed, has said that the decision to change may have been influenced by the NCS’ promise to grant one year waiver on exercise duty of 30% on items they produce.

Speaking to Vanguard Maritime Report in his office last weekend, Mohammed said it is unfortunate that they have not commenced the process of collating the number of persons that have switched from the illicit trade to the legitimate one but promise that the Command will soon begin the exercise.

He explained that the engagement with the various stakeholders at the Command has led to the near zero conflict between the NCS and the stakeholders in the course performing their duty.

According to him, “We met all the stakeholders, we told them of the government policy and got their buy-in and nobody is left in doubt as to what our duties are.

“We also explained to them that there are other economic activities that they can embark on. We explained to them that export is free, no duty collected for locally produced goods.

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“We told them that if they do informal, semi-formal to formal business activities, government will waive the 30 per cent of the value of their product (which they are supposed to pay as excise duty) as incentives to get foreign exchange for them to remain in business instead of engaging in smuggling.

“Those of them who can do excisable products here the federal government will give them tax holiday for the period of one year. Goods produced locally to be consumed in Nigeria; government collects 30 per cent duty (Excise Duty).

“So Customs gives them tax holiday for one year to allow their company stand on their own; some of them having known this embarked on such economic ventures and it has helped in reducing smuggling’’.