Economy
FIRS Institutes Tax Compliance Measures on Maritime, Aviation Industry Operators
By Tony Obiechina, Abuja
The Federal Inland Revenue Service (FIRS) said it would commence back-end tax audit on operators in the maritime and aviation industries. The Executive Chairman, Muhammad Nami, disclosed this Thursday (October, 28, 2021) while delivering an address at the Pedabo Thought Leadership Breakfast Session, focused on tax issues and the impact on development in the maritime and aviation industry, held in Lagos.
“The FIRS will soon launch a tax audit exercise on operators in the maritime and aviation industries. ” He stated, adding that “Back-end pre-audit activities, in collaboration with regulatory authorities in the industries, are at advanced stages.” According to a statement by his Special Assistant, Johannes Oluwatobi Wojuola, the FIRS Executive Chairman called on foreign players in these industries, who had lifted cargoes out of Nigeria without paying taxes to voluntarily come forward and regularise their tax standing. “Let me use this opportunity to invite all foreign companies that have lifted cargoes (including crude oil) out of Nigeria without paying tax in line with extant law to voluntarily come forward to regularise their tax positions. Those who would wait for FIRS’ audit before doing the right thing may find the taste very unsavoury.” He stated. Nami lamented that as important as the maritime and aviation industries are to the economic development of Nigeria, they were not yielding the expected revenue to the Federation’s purse. Blaming this poor revenue turn out on many factors, he stated that a major reason for the poor yield was the failure of foreign companies lifting cargoes to pay tax. “The low tax revenue performance of the two industries can be attributed to many factors, chief of which is the failure of foreign companies lifting cargoes (particularly, crude oil) to pay tax. This is contrary to the provisions of the extant tax laws. The revenue leakage from these non-compliant companies is very huge. “Tax authorities are unable to police these foreign companies because the transportation contracts are executed outside Nigeria and the tax authorities do not have the lifting schedules of the vessels ahead of their arrival in Nigeria.” He stated. Nami went further to add that governments’ existence and socio-economic development across the world today is defined by tax; as taxation has gone beyond a mere tool for raising revenue or a mere civil obligation of citizens. “The whole world is engulfed in a tax war. In days ancient, nations went to war to capture land for its inherent natural resources. Today’s war is about tax. The inability of the Inclusive Framework to reach a consensus on the tax questions around the digitalised economy is a clear testimony that tax is the new “resource” for which people go to war. “The statement published by the Inclusive Framework after a long-drawn negotiation clearly indicates that each country must clear a path for itself. The lack of consensus is, in itself, an eye opener; particularly for developing countries.” Nami stated.
The Nigerian Exchange Ltd. (NGX) continued its bullish trend on Wednesday, gaining N183 billion.
Accordingly, the market capitalisation, which opened at N59.532 trillion, gained N184 billion or 0.31 per cent to close at N59.715 trillion.
The All-Share Index also added 0.31 per cent or 303 points, to settle at 98,509.
68, against 98,206. 97 recorded on Tuesday.Consequently, the Year-To-Date (YTD) return increased to 31.
74 per cent.Gains in Aradel Holdings, Zenith Bank, United Bank For Africa(UBA), Oando Plc, Nigerian Breweries among other advanced equities drove the market performance up.
Market breadth closed positive with 34 gainers and 17 losers.
On the gainers’ chart, Africa Prudential, Conoil and RT Briscoe led by 10 per cent each to close at N14.30, N352 and N2.42 per share, respectively.
Golden Guinea Breweries followed by 9.95 per cent to close at N7.18, while NEM Insurance rose by 9.74 per cent to close at N10.70 per share.
On the other hand, Julius Berger led the losers’ chart by 10 per cent to close at N155.25, Secure Electronic Technology Plc trailed by 9.52 per cent to close at 57k per share.
Multiverse lost 7.63 per cent to close at N5.45, Haldane McCall dropped 6.07 per cent to close at N4.95 and Honeywell Flour shed 5.62 per cent to close at N4.70 per share.
Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 49.44 per cent.
A total of 320.10 million shares valued at N6.48 billion were exchanged in 7,943 deals, compared with 939.41 million shares valued at N12.81billion traded in 9,098 deals posted in the previous session.
Meanwhile, ETranzact led the activity chart in volume with 70.27 million shares, while Aradel led in value of deals worth N1.22 billion.(NAN)
The central parity rate of the Chinese currency renminbi, or the Yuan, weakened 22 pips to 7.1870 against the dollar on Monday.This is according to the China Foreign Exchange Trade System.In China’s spot foreign exchange market, the Yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.
The central parity rate of the Yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. (Xinhua/NAN)
Arewa Youths Initiative for Energy Reforms (AYIFER), has urged Nigeria National Petroleum Corporation Limited (NNPCL) to do everything possible to bring Kaduna Refinery back into operation.
National Coordinator of the group, Mr Bashir Al’Amin, stated this in a statement issued on Friday in Abuja.
Al’Amin specifically called on the Chief Executive Officer of NNPCL, Mallam Mele Kyari, to do all within his powers to rejuvenate the refinery and bring it up to global standard.
He said that having delivered the Port Harcourt refinery, coupled with the establishment of Dangote Refinery in Lagos, attention should be shifted to Kaduna refinery for easy spread of petroleum products.
“We are calling on Malam Mele Kyari to expedite action on Kaduna refinery so we can be at par with other regions in the country.
“We equally beg the NNPCL to do professional work in rehabilitating the old refinery and deliver a standard and functional petrochemical refinery and not a blending plant.
“Kyari should resist any temptation that could make him do something that can jeopardise his good image,” he said.
Al’Amin said that since the extinction of groundnut pyramid and textiles in Kano State as well as PAN in Kaduna State and with the Kaduna refinery getting moribund, a lot of youths had lost their jobs.
According to him, all their hopes in the north are tied to the legacy refinery, expressing the hope that God would use Kyari to deliver it well and on time.
He said that the group was solidly behind NNPCL in prayer and would be ready to celebrate the company if its expectations were met. (NAN)
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