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Taxes: Nigerian Government Has No Reasons To Be Broke – Marshal‏

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A United States tax expert, Marshal Sulayman has indicated that with the nation’s quantum endowments, in terms of its heavy resources, the Federal Government has no business being poor, if it manages its tax regime, appropriately.

Nigerian born, highly revered Principal partner, Deloitte Tax LLP; Houston Texas, Marshal  made the statement while delivering the Faculty of Management Sciences of the Ladoke Akintola University of Technology,  Ogbomoso maiden lecture, titled: Future of Mobility and Implications of Fuel Taxes: US Experience and consequences on Nigerian Economy, which held at the Tunde Afolabi Hall, LAUTECH, Ogbomosho on Tuesday.

Marshal displaying the award he washonoured with... for knowing his onions

Marshal displaying the award he was honoured with… for knowing his onions

“This Government has no business being poor or broke” he emphasized, noting that fuel taxes alone grosses the US government billions of dollars, annually.

He however also stressed that such healthy tax regime may not be realised, until the government properly defines first, analyse and work transparently on every collected tax.

He insisted that Nigerians must pay their taxes, both as individuals income and corporate, even as he emphasized on the need to essentially scrutinize Government’s utilization of collected taxes in the overall interest of infrastructural development and maintenance.

“It is easy to find solutions to the fuel situation in the country. It’s easy. You only need to first define the problem, analyze and accurately identify what came together, to constitute the problem.

“In my 19 years of living in the US, I have never for once had to queue for hours, to get fuel. That means they are doing something right; and we are doing something wrong.

“So, you just have to apply your senses, it is not complicated.

“The appropriate tax regime should also be able to ensure that there is an equitable distribution of impact.

“I don’t expect that if I am driving a Toyota Camry or a Corolla, I should be made to pay the same thing as someone that is driving a Mercedes truck 911. If you look at the factors responsible for the damaged roads; part of it is because of the weight of the vehicles, especially of the trucks.

“So, if your weight is 80,000 pounds, and mine is only 10,000 to 18,000 pound; then we should not be paying the same thing as well.

“So, what I am saying is that, those who are responsible for causing the heavier damage to the road should also contribute more to its maintenance, through taxes. This is not complicated; and you don’t need a theorist to prove this. You only need to apply common sense.

“But the major problem in Nigeria is that, whether I’m driving a 10,000 pound vehicle and he is driving an 80,000 pound truck, is he paying? And am I paying? No, both of us are often not even paying!

“Let’s focus more on the issue of fuel tax. The US, for instance,is collecting fuel tax for three reasons: Road construction; road maintenance and bridges. All the three you can broadly describe as infrastructure. And that is why you don’t see those broken roads you see here. It’s because we are paying those taxes; and they are using those taxes judiciously.

“For instance, if we are able to realise about $18trn last year; and about $95 billion was collected through fuel tax; we will all know how that money was spent!”,  he indicated, zeroing on where he thinks the authorities should start from.

 

“Honestly, I think the current government is trying. Only that I don’t think the government is trying enough.

” If I were to be in a position to advise the government today, I would advise the government to focus on things that would have direct impact on the public, like road and fuel. And it’s not difficult to solve these problems. All you need to do is for government to have a brainstorming section with the industry stakeholders; the key players and then be totally transparent.

“We must tell everybody, how much we are collecting, how much we are spending. This should be public information.

“For instance, we know that the US tax Authorities started around 1931/32, for the first time in collecting tax on fuel.

“We also know that in1956, they started putting it in a separate fund.

“By last year, it was $32 billion that was collected from fuel taxes.

“So, if you can have such data coming from the Nigerian government, then, any sane person can correctly advise them on what to do.

“So, our first problem is that, we don’t know what we should know, and we don’t even know that we don’t know and that is part of the problem”,  he explained,  affirming that while he had assisted the Mexican authorities and some other countries in getting started,  he still strongly believe that Nigeria is blessed with capable tax experts get started too.

“I know we do. We can start with what we have. And some of us can lend helping hands as experts, if the need becomes compelling. But you don’t need to import experts.

The US Tax expert was however,  greatly sad that the nation’s budget was yet to be passed, let alone go into implementation.

“This is crazy. How can you be talking of an unpassed budget in April. That’s gonna affect everybody. That’s gonna affect the economy. That’s gonna affect the GDP.

“Honestly, I don’t care whether it is the executive arm or the legislative arm that is causing the delay; what I am saying is that it is insane, that we don’t have a budget yet; and we are already in April, it is insane. It is crazy! And that is part of the problem!

“Sadly, this problem is not complicated to solve”,  emphasizing that Nigeria must accommodate a change template.

“A lot of things are changing. While we are still focusing on basic knowledge to solve our elementary problems, some countries are already focusing on some sophisticated approaches to handle their own mobility problems.

“Everybody is talking about “Change”, ‘Change’; do we fully understand what ‘change’ really entails?

“You drive those changes. You move it. You innovate it. You imitate it. We are not only talking of innovation. We are talking of imitation. If something is being done correctly in the U.S, what stops us from imitating it here?

“Government has to move in and take it up. Government has to give direction. And government has to do this transparently!

“Government must take the lead in ensuring that it correctly diagnose the problem; before applying solution. Today, part of the problem is that government doesn’t even adequately know what the whole problem is. Does that make sense?

“So, if the government does not correctly understand what the problem is, how can it correctly solve the problem?

“I arrived into the country from the U.S some three days ago. And I don’t believe it, learning that we have the President and about 10 Governors and Ministers and several other top officials going to China. They are making the trip at a time there is fuel scarcity here. It is insane!

“There is crisis here. You have fuel problem here; and you have ten governors, similar numbers of ministers all heading to China, along with the President and some PAs etc including some advisers going to China”,  he stated,  even as he again acknowledged the good intentions and current efforts of the Government.

“I am aware the government trying. But, I will tell you this: it is only that the government is not trying enough.

“In 2008, when Barack Obama became the president; the U.S economy was not in recession, it was in depression. Deep recession is depression. You know what Obama did then?

“First, he focused on the problem. I say, he focused on the problem. He correctly analyse, diagnose the problem—before approaching it with solutions. I don’t think the government is doing just that here, in this case.

“So, my advice is that government must ensure it thorough understands the problem first; before attempting to attach solutions to them. Otherwise, they may always end up chasing the shadows.

“I appreciate the fact that the government came; and it is overwhelmed.

“But, the President campaigned four times, he ran to be president four times. Right?

“So, he did not become a President by accident. So what did he have in mind, especially, for gunning for it for four times?

“Four times? That is 16 years! He should be an expert from day one”,  he submitted, before taking the last question,  which was focused on his view in respect of the railway.

“Well, generally the railway issue falls under the broad transportation regime. If you were here with me at the beginning, you would recall I explained that transportation begins from the cradle to grave. Right?

“Day one: you are born! You must be transported; either from the hospital or somewhere, somehow by somebody.

“Similarly, the day you die, somebody, somewhere, even if it is an Okada, would carry your coffin to… This also is transportation.

“Our job is to apply and build up all forms of transportation into one functioning and highly efficient network!

“Now, do we have any Nigerian Airways or its equivalent here?  No? Do we know how many Airways are coming to Nigeria daily? Yes? Did I hear you say yes?

“In which other areas of our transportation inadequacies are we also losing?

“This is the fulcrum of today’s discussion. Thank you!” he concluded.

Needless to say, Sulayman Marshall had received a tumultuous and well-deserved standing ovation from both the students and the academia, while as a revered expert, he handled a topic he knows like the back of his own hand!

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WAIVER CESSATION: Igbokwe urges NIMASA to evolve stronger collaboration with Ships owners

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…Stresses the need for timely disbursement of N44.6billion CVFF***

Highly revered Nigerian Maritime Lawyer, and Senior Advocate of Nigeria (SAN), Mike Igbokwe has urged the Nigeria Maritime Administration and safety Agency (NIMASA) to partner with ship owners and relevant association in the industry to evolving a more vibrant merchant shipping and cabotage trade regime.

Igbokwe gave the counsel during his paper presentation at the just concluded two-day stakeholders’ meeting on Cabotage waiver restrictions, organized by NIMASA.

“NIMASA and shipowners should develop merchant shipping including cabotage trade. A good start is to partner with the relevant associations in this field, such as the Nigeria Indigenous Shipowners Association (NISA), Shipowners Association of Nigeria (SOAN), Oil Trade Group & Maritime Trade Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“A cursory look at their vision, mission and objectives, show that they are willing to improve the maritime sector, not just for their members but for stakeholders in the maritime economy and the country”.

Adding that it is of utmost importance for NIMASA to have a through briefing and regular consultation with ships owners, in other to have insight on the challenges facing the ship owners.

“It is of utmost importance for NIMASA to have a thorough briefing and regular consultations with shipowners, to receive insight on the challenges they face, and how the Agency can assist in solving them and encouraging them to invest and participate in the maritime sector, for its development. 

“NIMASA should see them as partners in progress because, if they do not invest in buying ships and registering them in Nigeria, there would be no Nigerian-owned ships in its Register and NIMASA would be unable to discharge its main objective.

The Maritime lawyer also urged NIMASA  to disburse the Cabotage Vessel Financing Fund (CVFF)that currently stands at about N44.6 billion.

“Lest it be forgotten, what is on the lips of almost every shipowner, is the need to disburse the Cabotage Vessel Financing Fund (the CVFF’), which was established by the Coastal and Inland Shipping Act, 2003. It was established to promote the development of indigenous ship acquisition capacity, by providing financial assistance to Nigerian citizens and shipping companies wholly owned by Nigerian operating in the domestic coastal shipping, to purchase and maintain vessels and build shipping capacity. 

“Research shows that this fund has grown to about N44.6billion; and that due to its non-disbursement, financial institutions have repossessed some vessels, resulting in a 43% reduction of the number of operational indigenous shipping companies in Nigeria, in the past few years. 

“Without beating around the bush, to promote indigenous maritime development, prompt action must be taken by NIMASA to commence the disbursement of this Fund to qualified shipowners pursuant to the extant Cabotage Vessel Financing Fund (“CVFF”) Regulations.

Mike Igbokwe (SAN)

“Indeed, as part of its statutory functions, NIMASA is to enforce and administer the provisions of the Cabotage Act 2003 and develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure. Disbursing the CVFF is one of the ways NIMASA can fulfill this mandate.

“To assist in this task, there must be collaboration between NIMASA, financial institutions, the Minister of Transportation, as contained in the CVFF Regulations that are yet to be implemented”, the legal guru highlighted further. 

He urged the agency to create the right environment for its stakeholders to build on and engender the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders.

“Lastly, which is the main reason why we are all here, cessation of ministerial waivers on some cabotage requirements, which I believe is worth applause in favour of NIMASA. 

“This is because it appears that the readiness to obtain/grant waivers had made some of the vessels and their owners engaged in cabotage trade, to become complacent and indifferent in quickly ensuring that they updated their capacities, so as not to require the waivers. 

“The cessation of waivers is a way of forcing the relevant stakeholders of the maritime sector, to find workable solutions within, for maritime development and fill the gaps in the local capacities in 100% Nigerian crewing, ship ownership, and ship building, that had necessitated the existence of the waivers since about 15 years ago, when the Cabotage Act came into being. 

“However, NIMASA must ensure that the right environment is provided for its stakeholders to build and possess the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders. Or better still, that they are solved within the next 5 years of its intention to stop granting waivers”, he further explained. 

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Breaking News: The Funeral Rites of Matriarch C. Ogbeifun is Live

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The Burial Ceremony of Engr. Greg Ogbeifun’s mother is live. Watch on the website: www.maritimefirstnewspaper.com and on Youtube: Maritimefirst Newspaper.

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Wind Farm Vessel Collision Leaves 15 Injured

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…As Valles Steamship Orders 112,000 dwt Tanker from South Korea***

A wind farm supply vessel and a cargo ship collided in the Baltic Sea on Tuesday leaving 15 injured.

The Cyprus-flagged 80-meter general cargo ship Raba collided with Denmark-flagged 31-meter wind farm supply vessel World Bora near Rügen Island, about three nautical miles off the coast of Hamburg. 

Many of those injured were service engineers on the wind farm vessel, and 10 were seriously hurt. 

They were headed to Iberdrola’s 350MW Wikinger wind farm. Nine of the people on board the World Bora were employees of Siemens Gamesa, two were employees of Iberdrola and four were crew.

The cause of the incident is not yet known, and no pollution has been reported.

After the collision, the two ships were able to proceed to Rügen under their own power, and the injured were then taken to hospital. 

Lifeboat crews from the German Maritime Search and Rescue Service tended to them prior to their transport to hospital via ambulance and helicopter.

“Iberdrola wishes to thank the rescue services for their diligence and professionalism,” the company said in a statement.

In the meantime, the Hong Kong-based shipowner Valles Steamship has ordered a new 112,000 dwt crude oil tanker from South Korea’s Sumitomo Heavy Industries Marine & Engineering.

Sumitomo is to deliver the Aframax to Valles Steamship by the end of 2020, according to data provided by Asiasis.

The newbuild Aframax will join seven other Aframaxes in Valles Steamship’s fleet. Other ships operated by the company include Panamax bulkers and medium and long range product tankers.

The company’s most-recently delivered unit is the 114,426 dwt Aframax tanker Seagalaxy. The naming and delivery of the tanker took place in February 2019, at Namura Shipbuilding’s yard in Japan.

Maritime Executive with additional report from World Maritime News

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