BUSINESS

Tax reform bills: Customs Boss, Agents warn against contradicting the NCS Act

"The Act was introduced to stabilise customs operations, which have long suffered from inconsistencies..."

Tax reform bills: Customs Boss, Agents warn against contradicting the NCS ActThe Comptroller-General of the Nigerian Customs Service (NCS), Adewale Adeniyi has stressed the need to ensure that the approved tax reform bills do not contradict the NCS Act to preserve the agency’s core functions and efficiency.

This is coming just as the Association of Nigerian Licensed Customs Agents (ANLCA), has warned that the proposed tax reform bills could result in a policy somersault within the Nigeria Customs Service (NCS).

The National President of the association, Mr Emenike Nwokeji, said this in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja.

Are the tax reform bills elixir for Nigeria’s economy?

Nwokeji’s warning came on the heels of a public hearing organised on the four bills recently by the Special Committee on Tax Reform Bills in Abuja.

NAN reports that the proposed bills include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill.

Nwokeji said that implementation of the NCS Act 2023 only commenced in 2024 after taking over eight years to materialise, adding that repealing it could significantly disrupt the service’s operations.

According to him, the Act was introduced to stabilise customs operations, which have long suffered from inconsistencies, particularly in policies affecting the collection of import duties and other levies.

“In 2023, the long-awaited Nigeria Customs Act was signed into law by President BolaTinubu, and implementation only began in 2024.

“This is an act of parliament, based on all that was granted to customs, not up to 15 per cent has been implemented.

“Now, another tax bill is being introduced, under which all revenue will be warehoused by one authority,” he said.

He expressed concernthe provisions of the tax reform bills could create significant legal and operational conflicts with the NCS Act 2023 if not modified.

The ANLCA president urged the Federal Government to rather focus on strengthening and maintaining operations of the NCS,  while developing effective coordination mechanisms with other revenue agencies.

He described the customs service as a specialised agency requiring advanced expertise to carry out its functions effectively, warning that the proposed tax reforms could jeopardise its critical operations.

Highlighting the cost implications of repealing the Customs Act, he said additional resources would be required to train new agencies to perform the specialised functions.

Nwokeji said that it could take years to match the expertise of customs personnel who have long carried out these roles.

He expressed confidence that Nigeria had a responsive government that would not disrupt the NCS’s highly technical operations, while calling for broader public hearings on critical issues such the tax reform bills.

Meanwhile, NCS`s Comptroller-General, Adewale Adeniyi, described the comprehensive review of Nigeria’s tax laws as timely and necessary.

Adeniyi said that existing statutes no longer addressed modern fiscal challenges, economic shifts, technological advancements, and global best practices.

He expressed confidence that the reforms would drive Nigeria towards sustainable economic growth while aligning its tax system with global standards.

He stressed the need to ensure that the final bills do not contradict the NCS Act to preserve the agency’s core functions and efficiency.

Back to top button