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…Agency plan N3.019 trillion revenue for 2022
The Comptroller General of the Nigeria Customs Service, Col. Hamid Ibrahim Ali has said that some government economic and trade policies of excluding some items from accessing Forex from official window was affecting revenue generation by the service.
Speaking when he defended the 2022 budget estimate of the Service before the House of Representatives Committee on Customs and Excise, Ali also said the nation’s porous borders leading to smuggling, the absence of operational scanners and obsolate laws among others was also affecting revenue generation by the service.
The Customs boss said inspite of these factors, the service plan to general about N3.019 trillion as revenue in 2022.
He gave a break down of the revenue to include N2.019 trillion for federation account, N253.23 billion for non federation account and N746.96 billion for import VAT.
He said further that the revenue target which is based on the Medium Term Expenditure Framework and Fiscal Strategy Paper passed by the National Assembly said the revenue target is higher than 2021 target by N965.42 billion or 31.98 percent.
He said the approved revenue target for the service in 2021 was N1.679 trillion, while the service collected N1.716 trillion and an addition N525.06 billion as Value Added Tax, bringing the total to N2.241 trillion.
According to him, the standing government deliberate trade and economic policies such as the restrictions of 44 items from accessing FOREX at official window and non functional scanners at the various scanning sites has adversely affected the service’s ability to carry out effective examination for selective consignments and revenue generation.
He lamented that despite the service anti smuggling drive, the nation’s borders remain largely porous leading to smuggling activities which has also affected the service’s revenue drive, in addition to obsolete laws.
Ali said some of the key focus of the service in 2022 is the full implementation of it’s operations such as the e-Customs project which include full automation of Customs agency licences, Vehicle Identification number which are expected to encourage and enhance general performance.
He maintained that as a result of the federal government pursuit of improved Internal revenue generation, the service will, in collaboration with relevant government authorities ensure the implementation of the relevant laws.
He disclosed that the attractable excise duty of 6 percent on telecommunication services and N10 per litre on carbonated drinks is expected to commence fully before the end of the year.
He also disclosed that three functional mobile scanners have already been installed at different Customs location s, expressing the hope that this will translate into effective trade facilitation and enhanced revenue generation in 2022.
He said further that the purchase and deployment of operational vehicles, two sea-going vessels and 18 patrol boats across Customs formations would enhance the suppression of smuggling activities across different terrains and improve revenue generation.
He also said that the establishment of Post Clearance Audit and System Audit units within the service to uncover illicit financial activities is also expected to contribute maximally to improved revenue generation by the service.
Chairman of the House Committee on Customs and Excise, Rep. Leke Abejide, while commending the service for over shooting it’s revenue target for 2021, attributed the achievement to parameters prevailing at the time, such as reduction and removal of 35% levy on new automobile, devaluation of the Naira by the CBN, and unavailability of vaccines that made many economies hitherto closed to be opened.