THE Federal Government is proposing the imposition of new taxes on petroleum products, non-alcoholic beverages and telecommunications service providers as it moves to increase its revenue-generating capacity to fund the 2021 Appropriation Act.
The government wants the return of a N1.50 levy on each litre of petroleum product brought into the country and the taxing of non-alcoholic beverages like alcoholic drinks and tobacco.
This disclosure was made by the Controller General of the Nigerian Customs Service (NCS), Col. Hameed Ali (Rtd.), while appearing before the House of Representatives Committee on Customs to defend its 2020 budgetary performance and 2021 proposal.
Col. Ali, who led top officials of the Customs before the committee, made written and oral submissions with the lawmakers also grilling him for about 3 hours.
The Customs boss told the lawmakers that as part of strategies to improve revenue generation in 2021 based on the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper, the service introduced the e-Customs, which will make its operations electronic and automated.
He said, “Proportionally, it is the service’s expectation that, as a result of this reform, we will increase the revenue base of the government.”
The Customs boss also said that the service recommended and the government approved downward tariff review of the current 35 per cent levy on new and luxury imported vehicles to 5 per cent, in addition to the downward review of commercial vehicles from 35 per cent to 10 per cent.
He said, “This is to encourage massive importation of vehicles into Nigeria and further increase the revenue base of the government; also, and most importantly, to reduce smuggling of vehicles through our borders. The complaint has always been that the tariff is too high and, therefore, people are forced to go through the borders to smuggle their vehicles.