Tax Reform Bills: Customs duties beyond revenue collection — Experts

Tax experts have called on the federal government to exercise caution in the consideration of the Tax Reform Bills currently before the National Assembly, noting that Customs duties go beyond revenue collection. Speaking on the issue in an interview with journalists on the sidelines of Public Hearing on Tax reforms Bills, Mr Okey Ibeke, a [...]

featured-image

By Philip Shimnom Clement Tax experts have called on the federal government to exercise caution in the consideration of the Tax Reform Bills currently before the National Assembly, noting that Customs duties go beyond revenue collection. Speaking on the issue in an interview with journalists on the sidelines of Public Hearing on Tax reforms Bills, Mr Okey Ibeke, a customs and tax expert, emphasized that the duties of the Nigeria Customs Service (NCS) are highly technical and extend far beyond revenue collection. Ibeke described the NCS as a specialized agency requiring advanced technical skills to effectively carry out its functions.

He warned that the proposed tax reforms could undermine the agency’s specialized operations, which are critical to Nigeria’s revenue generation. The bills under consideration include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill. Ibeke expressed concerns that designated revenue agencies may lack the technical expertise, specialized workforce, and continuous training required to handle NCS operations.



He noted that these agencies might struggle to detect undervalued or misclassified goods, potentially leading to the acceptance of inaccurate import declarations. “Customs work is more than just collecting revenue. It involves classifying cargo, understanding tariff classifications, and conducting customs valuations.

Without the expertise to classify cargo and determine the applicable duty rates, there will be significant challenges. Only well-trained customs personnel can effectively perform these functions,” he explained. He further highlighted the importance of applying Rules of Origin (RoO), which are essential for determining the national source of products.

RoO, he said, is critical for assessing the value of imports, calculating appropriate revenue, and identifying fraudulent practices—tasks that general tax administration systems are ill-equipped to handle. Also speaking, another expert, Musa Yakubu noted that if the NCS is no longer responsible for revenue collection, it could result in reduced import duty collections. “The NCS has already made significant strides in modernizing its operations through its Trade Modernisation Project.

The deployment of the ‘B Odogwu’ software, for instance, has contributed to increased revenue collection and positioned the service to surpass its 2025 revenue target. Discover the latest trends on Temu! Shop mobile phones, fashion, beauty, home essentials & more. Start exploring now! Click here to learn how it works.

Unlock AI's potential! Get top prompts for content, blogs, social media, research, draft proposals and more. Boost creativity start using AI tools today! Click here to learn how it works. Start Affiliate Marketing Today! Learn step-by-step how to set up a blog, find programs, create links, and earn money—beginner-friendly guide inside! Click here to learn how it works.

Join our FREE WEBINAR! Discover the 3-step formula to turn WhatsApp into a cash-generating machine. Sign up now and start earning!" Click here to learn how it works. Master Facebook Ads! Learn to set up Business Manager, run campaigns, optimize budgets, and drive sales.

Start your journey to ad success today!" Click here to learn how it works. Unlock your confidence and attract the love you deserve! Learn how to become irresistible to women—start your transformation today!" Click here to learn how it works. Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.

.