GROUP CAUTIONS FEDERAL GOVT. AGAINST ARBITRARY REVENUE TARGETS FOR NCS
By Mcanthony Onuoha
The National Compliance Joint Taskforce of Licensed Clearing Agents- NCJTFLCA has vehemently citicised the arbitrary revenue targets being slammed on the management team of the Nigeria Customs Service in recent times.
According to the group, the humongous revenue target slammed on the Nigeria Customs Service is never in good faith. “The National assembly members who do not care about the plights of the citizenry, approve these outrageous targets without recourse to the hardships being experienced by ordinary Nigerians who are end users of most of these imported commodities.”
During an interaction with the Prestige Blended Magazine, the President of NCJTFLCA, Dr. Basil Chudi Nwolisa, said that “Nigerians are passing through a lot, but their plights do not matter to those representing them at the hallowed chambers in Abuja. Customs go extra miles to meet humongous revenue targets slammed on them by the government and callously approved by the National Assembly. Local manufacturers are struggling due to extremely high import duties, and not only that, freight forwarders are being impoverished because officers resort to intimidation to extort from them what they ought to have made as profit after charging an importer, the situation is quite frustrating to say the least.”
“The Federal Government of Nigeria and the Nigeria Customs Service should borrow a leaf from some countries in Africa by making more items duty free to cushion the effect of very harsh and unfriendly economic situation.”
Dr. Nwolisa stated that the disadvantages of revenue target outweighs it’s advantages.
” some of the disadvantages of establishing revenue targets by the Federal Government of Nigeria and the Nigeria Customs Service are not far fetched. Establishing revenue targets leads to over-valuation and arbitrary assessments by customs officials, resulting in excessive duties and taxes being imposed on importers.
Revenue targets can create an environment conducive to corruption, as customs officials may be tempted to inflate valuations or demand bribes to meet their targets.”
“Furthermore,
excessive revenue targets can harm businesses, particularly small and medium-sized enterprises (SMEs), which may struggle to pay high duties and taxes. This can lead to reduced economic activity, job losses, and decreased competitiveness. Revenue targets can lead to an inefficient allocation of resources, as customs officials may focus on generating revenue rather than ensuring compliance with customs regulations and facilitating legitimate trade. Not only that, revenue targets can create a lack of transparency and accountability, as customs officials may not be required to provide detailed explanations for their valuations and assessments.
It can as well lead to disputes and litigations between importers and Customs officials, resulting in additional costs and delays.
Excessive revenue targets can negatively impact trade facilitation, as customs officials may prioritize revenue generation over the efficient clearance of goods.”
“Additionally,
revenue targets can result in an inequitable distribution of revenue, as some customs officials may generate more revenue than others, leading to disparities in resource allocation and can also put pressure on importers to comply with unrealistic demands, leading to stress and anxiety. And moreso, can undermine the Federal Government’s Ease of Doing Business initiative, which aims to simplify and streamline business regulations and procedures.”
“While revenue targets may be intended to increase government revenue, they as well have far-reaching and unintended consequences that harm businesses, the economy, and trade facilitation, and that is why it is imperative that the Federal Government and the National Assembly reconsider their stance on revenue targets for Nigeria Customs and government agencies. It is the responsibility of every government to make life easy for citizens. Any government that does not do anything within its power to ameliorate the sufferings of its citizens is despotic and evil.”
According to Dr. Nwolisa, “freight forwarders are being impoverished due to high-handedness and callousness of officers manning various Commands and units. Apart from multiple alerts and other bottlenecks, some officers resort to intimidation to extort money from agents who at the end of the day, go back to their homes empty handed. Most of the alerts and bottlenecks are chiefly aimed at meeting revenue targets”, Nwolisa said.
