Hameed Ali, comptroller-general, Nigeria Customs Service (NCS), says the Customs generated N463.3 billion from excise duties within 15 years, but noted that the revenue should have been improved upon if there were no government’s decision to delist supposedly excisable imported products.
While reeling out statistics of revenue generation from years 2000 to 2015, which stood at N463,371,426,832 billion, Ali singled out year 2009 for which Nigeria’s revenue from excise duties started nose diving following delist of some goods from the list excisable products that left only two imported products, namely, alcoholic beverages and tobacco.
Ali, who spoke at the concluded National Council on Finance and Economic Development (NACOFED) held in Abeokuta, said imported goods such as perfumes, toilet papers, facial tissues, non-alcoholic and alcoholic beverages, fruit juice, soap and detergent, beer and stout, wines, spaghetti and noodles, among others, should be revisited if Nigeria must raise more revenue.
He said, “In the years 2000 to 2008, the Service generated N12, 247,529,673 billion from excise duty. On 1st January 2009, however, a Fiscal Policy Review Measure came into effect, removing substantial number of items from payment of excise duty.
“The policy restricted payment of excise duties and non excisable to only Breweries, Tobacco/Cigarette and other Alcoholic industries. Consequently, excise duty payment is currently limited to locally manufactured Beer, Stout, Tobacco products, Gin and other Alcoholic beverages.
“In the last seven years or also, sectoral incentives were given to importing and investing companies that double as exporters. These companies were given the full benefits of Export Expansion Grant (EEG), as incentives.
“These benefits however resulted into abuse of forex utilisation, transfer pricing, under invoicing, non repatriation of export proceeds and other export fraud to the detriment of the National economy.
“The companies enjoyed the incentives without paying excise duty. These companies should be brought under excise duty payment. After all, the companies have enjoyed sectoral incentives for seven years without paying excise duty, which is considered a reasonable period of tax holiday and gestation.”
He also explained that the government has failed to implement the ECOWAS members States legislation on Excise Duties which emanated from the 62nd Ordinary Session o the Council of Minister in 2009 in Abuja, saying the policy has placed Nigeria having the lowest tax bands in the Africa sub-region if not in Africa.
He however, declared that the Customs raked in N28,110,096,949.87 billion in eight months between January and August, 2016 across the border posts in the country.
