Group rejects suspension of 4% FOB levy, seeks total elimination; says CG must resign
Group rejects suspension of 4% FOB levy, seeks total elimination; says CG must resign
Segun Oladipupo
Freight forward practitioners under the aegis of Save Nigeria Freight Forwarders, Importers, Exporters Coalition (SNFFIEC) has called for total elimination of the 4% Free On Board (FOB) levy imposed on cargoes by the Nigeria Customs Service (NCS).
The group also pointed out that importers have erroneously aid over N500 billion of the levy even as he asked who will refund the people that have paid before its suspension.
Speaking on Wednesday in Lagos, the National Coordinator of the group, Chief Osita Chukwu Patrick maintained that the imposition of the levy would generate ripple effects on the economy
He therefore called for the resignation of the Comptroller General for introducing unpopular policy that has a negative impact on trade.
Recall that on Tuesday the 11th of February, the Nigeria Customs Service announced the suspension of the implementation of 4% Free-on-Board (FOB) value on imports as provided in Section 18(1)(a) of the Nigeria Customs Service (NCSA) , 2023.
Meanwhile, there is ongoing consultation with the Minister of Finance, Mr. Olawale Edun over the levy which was greeted by negative reaction by stakeholders.
He therefore called on importers and freight forwarders not to be cowed by the suspension but rather call for total eradication of the levy.
Chukwu, while seeking explanation from the Customs stated that already importers had allegedly commenced payment of the 4% FOB levies before the suspension saying that “Who will refund their monies with the new development of suspending the levy.
According to him,. high cost of cargo clearance from the nation’s ports will continue to soar higher if the levy finds its way back to the already existing multiple tariff on importation.
He said, “W”hat we want on this FOB levy is not suspension but total eradication there is no way it will add value to the system. It is dead on arrival.
We categorically call on the government to remove this 4% increase and revert to the original percentage being charged on the cargoes through FOB”. he declared.
Chukwu noted that what was agreed by stakeholders to be in the Act was a 4% increase in the derivation that accrued to the Nigeria Customs Service from all the levies and duties paid on goods and not a hike in the percentage on free on board (FOB) levy as presented in the act.
The Coordinator lamented that the economic hardships being faced by Nigerians has continued to render customs brokers jobless , noting that any levies introduced this time should be resisted by practitioners.
The SNFFIEC boss stated that that the Comptroller-General of Customs should have been in a better position to advise the Minister on the disadvantages of the levy on the trading public.
.He pointed out that consequences of implementing such a hike in levy earlier before the suspension at this moment could cost more problem for the trading public.
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