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Stakeholder seeks end to multiple taxation in ports

The Registrar, National Association of Government Approved Freight Forwarders(NAGAFF), Academy  in Lagos State, Francis Omotosho, has declared that until the existing multiple taxation at Nigerian seaports are removed, ease of doing business cannot be achieved in the ports, crimes in the sector and cost of living will remain on the increase in the country.

Omotosho spoke at a one-day training for Maritime Police Officers by the Nigeria Shippers Council (NSC) on “understanding the role and impact of the Police in Maritime Industry”, in Port Harcourt, the Rivers state capital recently.

Speaking on: “Police as agent of economic change Matrix, Port Efficiency and Global competitiveness”, Omotosgo observed that beyond the extortions by the police and other agencies at the port, multiple taxation, most of which are non-statutory, is the bane of ports operations in the country.

He noted that multiple charges are the major cause of all manner of crimes perpetrated at the ports ranging from smuggling, forgery, false declaration, delays in cargo clearing and above all high cost of living and hardship in the country.

“The root cause of delays and high cost of doing business in Nigerian ports is the problem of multiple taxation.

“There are several statutory and non-statutory taxes at the ports which push the cost of living in the country very high.” he said.

The Registrar listed some of the taxes being charged at the ports to include, customs duty, seven per cent port levy, one per cent Compressive Import Supervision Scheme (CISS), five per cent ECOWAS Trade Libralization Scheme(ETLS), two per cent on all automobile cargo into the country(NAC), there is also about 35per cent AfCFTA against 0-5per cent charged by other African countries, and 7.5per cent  Value Added Tax(VAT).

He called for deliberate review or complete removal of all taxes to entrench sincerity, integrity and honesty in ports business which according to him will facilitate ease of doing business in the Ports sects.

“The ports-seaports, airports and land borders are the gateways of every economy, they are the points of entry and exit of goods and services, imports and exports for foreign exchange, they are not for huge profit making, but unfortunately,  our government  has turned them into gain making firms.

“Customs duty is the most and only important government tax paid by Port users all over the world. This is because portsglobally is not for revenue generation, but to facilitate trade, but unfortunately, the Nigerian government has turned the Ports into a heavy revenue generation company.

“Ports are places where cargo is cleared within 24 hours from the time of landing, meaning that any Port that recorded a high profit margin in a year is indication something is wrong and should be investigated.

“The concept in Port operation is that three day-free period for cargos to be offloaded and positioned in the terminals for clearing and delivery;  within the three days, one can still go in and take delivery of his, her cargo(s) without paying a dime to the Port, this is the practice all over the world, meaning that the seaports are not for profits.

“But that is not the case with us here in Nigeria, instead, after the first three days, you now spend another three weeks(21) days before you will be able to get your cargo out, thereby forcing you to pay so many taxes, levies and charges before picking up your cargo,” he said.

Speaking on the 2004 Port concessioning and the poor state of the Ports in the last 18 years regretted that the situation has rather gone worse.

“The aim of concessioning the Ports was in 2004 was to enable the concessionaires to bring their expertise, develop the ports and reduce the cost of doing business and improve the quality of life of citizens, but suffice it to say that between 2004 till date, the cost of Ports operation in Nigeria has increased by over 300per cent, and the facilities now nothing to write home about, an eyesore and far below the recommended global ports standard, hence the aim of going into concessioning completely  defeated and regrettable.

“We have serious problems in this country and until the government melts down on all these taxes, Nigeria cannot move forward.

“It is high time timeline be placed on every levy, contributions on the citizenry if need be for any contribution  and the need to also ensure that the objectives, purpose for the levy is achieved within the timeline cannot be over-emphasized to avoid indefinite enrichment of someone group of persons somewhere hiding under one levy or the other.

“Levies, contributions and charges cannot be forever, if you are giving us a levy you must add a time frame when the contributions will stop and the monies realized would have been used for that purpose, the only thing that remains statutory  is the Customs Duty and it must not be more than 0-5% for effective and efficient use, patronage of the ports, ease of doing business and reduce cost of goods and services for improved lives of Nigerians and others living in Nigeria, people are suffering so much in this country and the leaders pretend not to notice it.

“Taxes in Nigerian Ports must be amended to allow for free flow of cargo, our basic need, because that is the root cause of all kind of crimes, forgery and other illegalities in port environment, when that is done, Port operations will have a human face, and everyone will practice and do business in the place with honest and integrity,” he said.

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