15% NAC Levy Unfair, Administrative Incoherence, Says Nweke
DR. EUGENE NWEKE
By Our Reporter
The former President of the National Association of Government Approved Freight Forwarders (NAGAFF), Dr Eugene Nweke has said that the 15 percent NAC levy
was unfair, adding that the Customs Service does not have the power to slam the levy.
Nweke said that rather the Customs only has the power of enforcement while levy and any other form of taxation on traded goods were strictly the policy prerogative of the government.
He said the 15 percent NAC levy was a pointer to the inherent administrative incoherence and confusions on the part of the government.
In a statement, Nweke said the Customs should point out the economic impact of the 2 percent NAC levy that has been collected for over two decades.
He stated “FIRST IT IS IMPORTANT TO REITERATE THAT, THE CUSTOMS DOES NOT HAVE THE POWER TO SLAM LEVY RATHER CUSTOMS ARE ENFORCEMENT ARM OF THE GOVERNMENT, WHEREFORE NEEDLESS TO PITCH THE TRADING PUBLIC AGAINST THE CUSTOMS. LEVY OR ANY FORM OF TAXATION ON TRADED GOODS ARE STRICTLY A POLICY PREROGATIVE OF THE GOVERNMENT.
“THE 15% NAC LEVY IS A CLEAR POINTER TO THE INHERENT ADMINISTRATIVE INCOHERENCE AND CONFUSIONS ON THE PART OF OUR GOVERNMENT.
“THE INCESSANT POLICY TWISTS AND SUMMERSAULTS OF THE GOVERNMENT CONSTITUTES A MAJOR CAUSE OF THE NOTICEABLE INSTABILITIES IN OUR ECONOMY.
“IT SUFFICES TO POSIT AN OPEN CHALLENGE TO THE AUTHORITIES TO OFFER TO THE GENERAL PUBLIC AN ANALYTICAL POSITIVE IMPACTS OF THE FOLLOWING POLICY AND THE LEVY THEREOF ON OUR ECONOMY:
“a. The economic impacts of the 2% NAC collection for a period of 2 decade plus – How developed is our automobile industry?.
b. The import policy of 20% on cars Importation and 10% on Buses and Trucks Importation – Any accountable economic benefits?.
c. The 2013 Automobile Policy leading to the issuance of permit to over 130 automobile plants, with its accompany 35% Import Duty and 35% Levy on New vehicles and 35% Duty with 7.5% Vat on used vehicles – Is aimed defeated or actualized, because most of the licensed automobile plants has turned to mere traders, in the face of increasing import volume for used and accidented vehicle, mostly so, where the intent of the policy was to evolve a mass production of quality and affordable vehicles for the Nigeria populace?
d. The recent reversed policy of 20% Duty and 7.5% Vat.
e. Now the 20% Duty , 7.5% Vat and 15% NAC Levy on used vehicles.
“Without sounding immodest, this incessant auto policy is rather an administrative rigmarole and a defeat of objectives, because when we compute both the negative impacts of the inherent over taxation tendencies of the auto policy formulations to the economy and its citizenry, it far outweighs the positive, especially in the context of job creation and local capacity development.
“Here again, the interplay between political and economic of interests becomes a thing of concern, as unstructured auto policy tantamount to counter productive.
“It is also worth while to commend the Anlca leadership for expressing dissatisfaction over this latest NAC LEVY OF 15%, notwithstanding, the bottom line remains an adherence to the 35% status quo on imported used vehicle into Nigeria.
“It has become obvious and apt for the association to constructively engage the Ministry of Finance and the national assembly on the subject matter, directing practitioners not to pay may amount to penny wise pound foolish, mostly so, where demurrage and storages charges are not promptly regulated.
“It is expedient to reinstate that, if there is any time to sustain effective public policy advocacy, now is the right time, reasons being that, in an electioneering year.
Presently, office holders in critical presidency, ministries, departments and even the national assembly will be grossly indulge in politiking, and careless about official supervisions, whereby, as a side show, all manner of unstructured taxation policies are easily smuggle into the system, and after the elections, the new administration may resort to do a reversal of such policy so as to portray self as being masses oriented government.
So sustain an effective public policy advocacy till you make your point, as a critical stakeholder.
“May I therefore, summarized by reiterating that, our dear country is in dare need of a national auto policy that is definitive and sustainable in design and application, devoid of political antics, but driven by prompt sense of patrioticism that gears towards nationhood obligations”.
(Note…You can reach us on:shippingday2@gmail.com)
The former President of the National Association of Government Approved Freight Forwarders (NAGAFF), Dr Eugene Nweke has said that the 15 percent NAC levy
was unfair, adding that the Customs Service does not have the power to slam the levy.
Nweke said that rather the Customs only has the power of enforcement while levy and any other form of taxation on traded goods were strictly the policy prerogative of the government.
He said the 15 percent NAC levy was a pointer to the inherent administrative incoherence and confusions on the part of the government.
In a statement, Nweke said the Customs should point out the economic impact of the 2 percent NAC levy that has been collected for over two decades.
He stated “FIRST IT IS IMPORTANT TO REITERATE THAT, THE CUSTOMS DOES NOT HAVE THE POWER TO SLAM LEVY RATHER CUSTOMS ARE ENFORCEMENT ARM OF THE GOVERNMENT, WHEREFORE NEEDLESS TO PITCH THE TRADING PUBLIC AGAINST THE CUSTOMS. LEVY OR ANY FORM OF TAXATION ON TRADED GOODS ARE STRICTLY A POLICY PREROGATIVE OF THE GOVERNMENT.
“THE 15% NAC LEVY IS A CLEAR POINTER TO THE INHERENT ADMINISTRATIVE INCOHERENCE AND CONFUSIONS ON THE PART OF OUR GOVERNMENT.
“THE INCESSANT POLICY TWISTS AND SUMMERSAULTS OF THE GOVERNMENT CONSTITUTES A MAJOR CAUSE OF THE NOTICEABLE INSTABILITIES IN OUR ECONOMY.
“IT SUFFICES TO POSIT AN OPEN CHALLENGE TO THE AUTHORITIES TO OFFER TO THE GENERAL PUBLIC AN ANALYTICAL POSITIVE IMPACTS OF THE FOLLOWING POLICY AND THE LEVY THEREOF ON OUR ECONOMY:
“a. The economic impacts of the 2% NAC collection for a period of 2 decade plus – How developed is our automobile industry?.
b. The import policy of 20% on cars Importation and 10% on Buses and Trucks Importation – Any accountable economic benefits?.
c. The 2013 Automobile Policy leading to the issuance of permit to over 130 automobile plants, with its accompany 35% Import Duty and 35% Levy on New vehicles and 35% Duty with 7.5% Vat on used vehicles – Is aimed defeated or actualized, because most of the licensed automobile plants has turned to mere traders, in the face of increasing import volume for used and accidented vehicle, mostly so, where the intent of the policy was to evolve a mass production of quality and affordable vehicles for the Nigeria populace?
d. The recent reversed policy of 20% Duty and 7.5% Vat.
e. Now the 20% Duty , 7.5% Vat and 15% NAC Levy on used vehicles.
“Without sounding immodest, this incessant auto policy is rather an administrative rigmarole and a defeat of objectives, because when we compute both the negative impacts of the inherent over taxation tendencies of the auto policy formulations to the economy and its citizenry, it far outweighs the positive, especially in the context of job creation and local capacity development.
“Here again, the interplay between political and economic of interests becomes a thing of concern, as unstructured auto policy tantamount to counter productive.
“It is also worth while to commend the Anlca leadership for expressing dissatisfaction over this latest NAC LEVY OF 15%, notwithstanding, the bottom line remains an adherence to the 35% status quo on imported used vehicle into Nigeria.
“It has become obvious and apt for the association to constructively engage the Ministry of Finance and the national assembly on the subject matter, directing practitioners not to pay may amount to penny wise pound foolish, mostly so, where demurrage and storages charges are not promptly regulated.
“It is expedient to reinstate that, if there is any time to sustain effective public policy advocacy, now is the right time, reasons being that, in an electioneering year.
Presently, office holders in critical presidency, ministries, departments and even the national assembly will be grossly indulge in politiking, and careless about official supervisions, whereby, as a side show, all manner of unstructured taxation policies are easily smuggle into the system, and after the elections, the new administration may resort to do a reversal of such policy so as to portray self as being masses oriented government.
So sustain an effective public policy advocacy till you make your point, as a critical stakeholder.
“May I therefore, summarized by reiterating that, our dear country is in dare need of a national auto policy that is definitive and sustainable in design and application, devoid of political antics, but driven by prompt sense of patrioticism that gears towards nationhood obligations”.
(Note…You can reach us on:shippingday2@gmail.com)
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