The federal government say it plans to ultimately cut down on the cost of tax expenditure and ensure tax incentives through means that would positively impact the economy.
To this end, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, recently approved the inclusion of an Incentive Monitoring and Evaluation Platform (IMEP) in the current Import Duty Exemption Certificate (IDEC) process.
Mohammed Manga Director, Information & Public Relations who revealed this in a statement explained that the IDEC automation, which was introduced 1st March, 2020, is a Fiscal incentive by the federal government under the Ministry of Finance to boost sectors of the economy by exempting critical players from paying import duty and all other statutory customs charges.
The statement quoted the minister to have said the plan seeks to provide the Federal Ministry of Finance with a robust automated tool for more effective Monitoring and `Evaluation (M &E) measurement of the impact of all customs duty exemptions issued by the Ministry to government entities, companies, non- governmental oganisations (NGOs) and international organisations.
According to the minister, the system is designed to provide a framework to exclude and restrict ineligible applicants, enforce strict compliance to fiscal policy measures and provide a robust impact analysis of tax incentives on the economy. “This will further eliminate the misuse of tax expenditures; support the delivery of economic outcomes from fiscal incentives and strengthen the direct measurement of the impact of tax incentives on the economy”, he added.
The statement listed the key features of the IMEP to comprise: duty waiver claw back mechanism for issuance of demand notices to defaulters which would prevent misuse of issued incentive, e-report generation, a centralised database, factory geo-location tagging, industry qualification status validation, and inter- ministries department and agency (MDA) integration.
Mr Edun stated further that a webinar would be conducted on Tuesday, 23 April 2024, to provide clarity on the revised IDEC process.
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