Lagos Industrial sensitises excise companies on fiscal policy on plastics, others***

The Nigeria Customs Service, Ogun 1 Area Command, has dismissed the viral video on social media that the Idiroko border has been reopened for business activities as misleading.

The Area Comptroller, Mr. Bamidele Makinde, made this known while addressing a news conference in Abeokuta on Tuesday.

Makinde stated that the Idiroko land border had been reopened for business since 2022.

The area comptroller explained that: “The Idiroko border alongside three others reopened in 2022 by the immediate past administration has continued to remain opened for legitimate trade.”

Makinde however warned that “anyone who does business in the unapproved route will be intercepted”.

Giving a scorecard of the command for the months of April and May, the comptroller said the command wielded its big stick on unscrupulous traders who engaged in illicit trade.

He confirmed that spectacular seizures included the seizure of three foreign-used luxury buses.

Makinde explained that seizures were made with strategic deployment of intelligence across the state which resulted in having over N335 million as the duty-paid value of the seizures recorded.

He listed other seizures recorded as 6,924 bags of smuggled parboiled rice of 50kg each, used tyres and cannabis sativa.

Makinde put the total Duty Payable Value (DPV) of the seizures at N335,855,989.

He also disclosed that the command generated about N34.174 million compared to N10,615,618,00 collected in the corresponding period in 2022.

According to him, the figure showed a differential of N23,558,487,00, which is a significant increase of about 69 per cent

In another development,

Customs Area Controller of Lagos Industrial Area Command, Comptroller Queen Ogbudu, said, during the sensitisation programme in Lagos on Tuesday that the payment for excise on plastic would start this month.

Ogbudu said that there were only duties on carbonated drinks before the plastic regime with a specific rate of N10 per litre.

She, however, noted that some alcoholic beverages duties had been increased as stout and beer factories that were initially paying N40 per litre, now pay 20 per cent Ad Valorem and N75 per litre, respectively.

She pointed out that companies that produce alcoholic beverages, such as brandy, rum, vodka and whisky had 30 per cent Ad Valorem and a specific rate of N150.

Ad Valorem is a form of taxation based on the value of transactions or personal property calculated on a percentage of the products.

She said that the purpose of the meeting was to further clarify the Federal Government’s approval for the implementation of the 2023 Fiscal Policy.

“Letters have been distributed to the affected companies and I am happy that many of them have been coming for clarification.

“We are aware that those of them coming under this regime for the first time will find it difficult to adapt, but as the saying goes, nothing good comes easy.

“This is a price we all have to pay for the common good of our country. Our doors are open for more clarifications where necessary; for a smooth and friendly relationship,” she said.

She noted that the public relations units of the headquarters had been sensitising the public to ensure that more companies key into the new regime.

She said her operations team were on top of the situation to ensure that all excise duty companies were brought on board.

She also said that the command had gotten 29 factories into plastics on board, while many of those involved carbonated and alcoholic had also joined.

Ogbudu said that the penalty for non-payment of duty was twice in value of payment that was meant to be paid.

On revenue generated this year, the customs boss noted that there was an improvement when compared with last month, despite the crash crunch earlier in the year.

“I appreciate the traders because I know it is not easy for them  A lot of them wrote to the office that they had produced but had no buyers and that they had always tried to pay.

“The traders should understand that we are implementors of government policies. They should not forget that it’s money generated by the customs service with other arms of government that generate revenue that is used for running the current expenditure in the country.

“Oil is for settlement of external debts. So, for Nigeria not to fail or collapse, they should continue with their payment. Somebody has to pay the sacrifice for the future generations and I appreciate them for their cooperation,” she said.

The companies that participated in the stakeholders’ meeting were Nigerian Bottling Company, Niger Belt Company, 7up bottling company, Lacasera, Coco House West Africa and others.

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