The Federal Government has revealed that it is set to strip the Nigerian Maritime Administration and Safety Agency (NIMASA) of the function of collecting 3 per cent freight duty, as it is seen as an aberration.
Special Adviser to the President on revenue, Zacch Adedeji, stated this yesterday during the virtual TOPAZ 88 second lecture series, which had the title, “Revenue Challenges and Opportunities in Nigeria Today.”
According to the SA “What we want to do now is to ensure that regulators focus on regulations while agencies in charge of tax collections will collect. For instance, the Nigerian Maritime Administration and Safety Agency (NIMASA) collects 3 per cent freight duty, but it is not their duty. Their duty is to secure the waterways. Collection of freights is the sole responsibility of the Nigerian Ports Authority. This is the reason we have leakages because we don’t know how much we have.
“However, if we streamline and harmonise these taxes, we will know how much we have and then we can effectively utilise them,” he said.
The FG official also stated that the government has put modalities in place to streamline its taxes from 52 to 10.
He reasoned multiple taxations negate compliance and trust in tax payment. “What the federal government is doing right now is to ensure that the poor breathe. The aim of this administration is to tax prosperity and not poverty and tax the fruit, not the seed.
The Presidential aide also revealed that the Federal Inland Revenue Service (FIRS) will be renamed to the Nigerian Revenue Service, after the necessary legislative amendments.
Explaining the rationale behind the name change, he said the idea was to ensure that all taxes due to the federal government becomes the sole responsibility of the federal government, as well as to avoid duplications.