NECA has urged for the cancellation of a new four percent import levy initiated by the Nigeria Customs Service, citing its detrimental effects on businesses during a challenging economic period. The director-general of NECA called out for government consultations with stakeholders to create more sustainable economic policies, aiming to alleviate burdens rather than intensify hardships for businesses.
The Nigeria Employers’ Consultative Association (NECA) has called for the cancellation of a new four percent charge imposed on the Free on Board (FOB) value of imports by the Nigeria Customs Service (NCS). This demand was articulated by NECA’s director-general, Adewale-Smatt Oyerinde, following the announcement made by NCS spokesman Abdullahi Maiwada regarding the implementational directive effective February 5, according to the Nigeria Customs Service Act (NCSA) 2023.
Oyerinde criticized the timing of this levy, labeling it as detrimental to both businesses and the Nigerian populace amidst ongoing economic instability. He highlighted how the business climate is already challenged by numerous taxes and erratic policies, emphasizing the need for supportive measures instead of adding financial pressures. He warned that this levy could escalate operational costs, increase inflation, and jeopardize employment opportunities.
Furthermore, he stated, “With rising unsold inventories and growing unemployment, policies should support businesses, not further suffocate them.” Oyerinde urged the government to engage with stakeholders to devise revenue-generating strategies that are sustainable and supportive of business needs. He urged immediate government action to relieve financial pressures on businesses and citizens, rather than exacerbating economic hardships.
The recently implemented four percent import levy by the Nigerian Customs Service is part of an effort to generate revenue that aligns with the new Nigeria Customs Service Act of 2023. However, this levy has raised concerns among business leaders, particularly the NECA, who argue that it may worsen the economic situation for businesses that already face high operational costs and limited consumer spending. The Nigerian economy has been under strain due to multiple factors including high inflation, rising unemployment, and fluctuating policies that create an unpredictable investment environment. The call for a reversal of the levy reflects a broader concern regarding the balancing act between revenue generation by the government and the support needed for the business community to thrive.
In summary, NECA’s demand for the reversal of the newly imposed four percent import levy reflects significant concerns regarding its adverse impact on the Nigerian business landscape. The levy is viewed as an added financial burden that could lead to increased production costs, inflation, and job losses. Stakeholders are encouraged to engage in discussions to develop more equitable revenue strategies that would not compromise business sustainability amidst the current economic challenges.
Original Source: gazettengr.com
