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Remove VAT From Diesel, Tax Committee’s Boss Urges …MDAs may be stopped from tax collection

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1 year ago

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The Chairman, Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, has said stated the need to remove Value Added Tax (VAT) on Automotive Gas Oil (AGO), popularly known as diesel to offset the impact of removal of petrol subsidy.
He said in order to ease the economic strains warranted by the removal of fuel subsidy, the committee need consider  suspending VAT on diesel.
Oyedele, formerly a Fiscal Policy Partner and Africa Tax Leader at Price Waterhouse Coopers (PwC), emphasised the urgency to address pressing economic concerns within the initial 30 days of the committee’s tenure.
“Personally, for example, this is not promising that it would be done. I think that we should suspend VAT on diesel because we removed fuel subsidy on petrol and prices are going up. We are going to table it before the committee. These are the things we want to do in the first 30 days”, he said.
Oyedele’s committee was inaugurated by President Bola Tinubu in Abuja on Tuesday and is charged with accomplishing crucial tax reforms, streamlining and harmonisation of tax laws, executive order issuance, regulatory implementation, and more over the following six months.
Although the committee has a one-year timeline for policy implementation, Oyedele clarified that the 30-day, six-month, and one-year milestones run concurrently.
The committee also intends to address excessive bank charges and reduce the exorbitant number of levies and taxes paid by businesses.
Oyedele revealed that businesses are burdened by as many as 65 to 70 different taxes and levies, while the committee’s objective is to curtail this number to around 10.
He said the Nigeria Customs Service (NCS) and 62 other Ministries, Departments and Agencies (MDAs) of the Federal Government should not collect revenue directly.
He, however, said the revenue collecting agencies of the federation can continue to collect revenue until a definite decision is taken to stop the practice.
He said the details of stopping revenue collecting agencies other than the Federal Inland Revenue Service (FIRS) from collecting such revenues “will be discussed by the committee with extensive engagements with key stakeholders including the affected MDAs”.
According to him, “it’s still a long way as many of the MDAs revenue collection functions are enshrined in their establishment laws”.
Oyedele had on Channels TV had hinted that the Federal Inland Revenue Service (FIRS) will now be responsible for collecting revenue for the MDAs.
He explained that this change will bring several benefits, including improved efficiency and reduced collection costs.
Oyedele stated that the current cost of collection is high due to the numerous agencies involved, noting that the MDAs are being distracted from their primary functions and are not equipped to efficiently collect revenue.
By transferring the revenue collection duties to the FIRS, Oyedele believed two advantages can be achieved, saying there will be a reduction in collection costs and an improvement in efficiency, and that the MDAs can focus on their core responsibilities, ultimately benefiting the economy.
Oyedele emphasized that agencies like Customs should concentrate on trade facilitation and border protection, while the NCC should solely regulate telecommunications.
Revenue collection, he said, can be outsourced to specialized entities like the FIRS, leading to increased transparency and accountability in how funds are utilized.
Additionally, Oyedele noted the existence of a significant tax gap, estimated to be around N20 trillion or more, stressing the importance of focusing on major taxes such as Value Added Tax, Corporate Income Tax, and Personal Income Tax.
“Many individuals, particularly the middle class and elite, are not fully compliant with their tax obligations, with some only paying a fraction of what they should be contributing”, he said.
According to him, the Federal Inland Revenue Service (FIRS) is best-suited to collect revenue for the MDAs.
“Ironically, our cost of collection is one of the highest. And the reason for that is that we’ve got all manners of agencies. The Federal Government alone, we have 63 MDAs that were given revenue targets last year, no; actually in the 2023 budget”, he said.
“And two things that would come up from that: on one hand, these agencies are being distracted from doing their primary function which is to facilitate the economy. Number two, they were not set up to collect revenue, so, they won’t be able to collect revenue efficiently.
“So, move those revenue collection function to the FIRS. It has two advantages: the cost of collection and efficiency will improve, these guys will focus on their work, and the economy will benefit as a result.
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MoneyPoint Empowers Pharmacists With Payment Solutions 

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October 9, 2024

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MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.

Corlins Walter

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Embrace AI, CIIN Urges Insurance Operators 

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October 9, 2024

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In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.

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NASRDA Reassures On Strengthening Nigeria’s Space Capability 

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1 month ago

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October 9, 2024

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In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.

Corlins Walter

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