The Nation Newspaper

Tag: levy

  • Lagos considers levy on beverages

    Lagos considers levy on beverages

    To tackle the growing burden of Non-Communicable Diseases (NCDs) and promote public health, Lagos State Government is contemplating a pro-health levy on Sugar-Sweetened Beverages (SSBs).

    Commissioner for Health, Prof. Akin Abayomi, stressed the potential benefits of such a levy during a meeting with stakeholders, including Corporate Accountability and Public Participation Africa (CAPPA), Global Health Advocacy Incubator, and the Centre for the Study of Economies of Africa (CSEA).

    The proposal comes in response to a simulation study presented by the delegation, which suggests increasing the SSB tax from the current N10 per litre to N130 per litre.

    The move is aimed to reduce Nigeria’s heavy consumption of soft drinks, ranked fourth globally, and alleviate the associated health risks.

    The projected tax increase can generate an estimated N729 billion in tax revenue, which stakeholders suggest can be allocated to bolstering the health care sector.

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    Executive Director of CAPPA, Akinbode Oluwafemi, highlighted the potential health and fiscal advantages of the policy, emphasising its role in mitigating NCDs such as obesity and high blood pressure.

    He said: “We think that this is one of the tools that we can use to lower NCDs that are becoming a big burden in Nigeria – including obesity, high blood pressure, etc.

    “The government imposed a N10 per litre tax on SSBs in 2021, which is actually five kobo for 50cl of SSBs. At that time, it (SSBs) was selling for N100. It is a fixed tax. Today, it is selling for N300. The government tax is still N10. And if you look at the inflation rate, that, in itself, needs to have been improved.

    “We commissioned the Centre for the Study of Economies of Africa (CSEA) to look at the potential health and fiscal impacts of SSB tax. We did a simulation, and even before the floating of the naira when this study was completed, the simulation projected that N130 should be the appropriate tax per litre of SSBs in Nigeria.”

  • Satanic levy

    Satanic levy

    Good the senate has rejected fuel price hike for the National Roads Fund

    Just as well that our senators rejected the satanic N5 levy on fuel pump price per litre proposed by the Senate Committee on Works in a Bill for an Act to Establish the National Roads Fund. The bill is in respect of “financing the maintenance and rehabilitation of national roads and for other matters connected therewith, 2017( S.B 218).” It was presented by the committee’s chairman, Senator Kabiru Gaya (APC, Kano South).

    Senator Gaya had said the N5 levy would not affect the N145 per litre that petrol goes for in the country. “There was media report last week that we are increasing fuel (price) by N5. That is not true. We intend to remove the N5 from the current N145 per litre. If this bill is passed, the government will realise about N94 billion per annum into the National Roads Fund for road maintenance across the country,” Gaya said. It would appear the proposal did not enjoy majority support even at the committee level, if media reports that some of the members of the committee even voted against that aspect of the bill. Senate President Bukola Saraki seemed to see reason with Gaya. But it was good the majority of the senators vehemently rejected the proposal. It is satanic and should only be thrown into the trash can.

    Almost everyone agrees that there is need for some form of toll/levy for the maintenance of the federal roads because it is obvious the Federal Government cannot shoulder the responsibility alone. Indeed, some people have suggested that some of our roads be tolled as a way out of the problem.

    But we all know this is not the first time we would have toll gates on some of our roads. The Lagos-Ibadan Expressway which was commissioned in August 1978 by the then Head of State, General Olusegun Obasanjo, was tolled just to make money available for maintenance and probably to enable us construct more of such roads. As with most Nigerian laws, it was only a matter of time for all manner of persons to start refusing to pay toll at the toll gate. Military chiefs, police chiefs, influential Nigerians blaring one siren or the other soon exempted themselves from payment of the toll.

    While this was bad enough, it was not what eventually killed the idea. Corruption, that cankerworm that is killing the country, no thanks to our judiciary, crept in big time and the toll gates soon became a cesspool of corruption. Concessioning them made little or no difference. This was what prompted then President Obasanjo to order the dismantling of the toll gates overnight in 2004. At the time, the tolls were only fetching the Federal Government about N800m annually, which could only scratch the problem of road maintenance on the surface. A lot much more was feared to have gone into private pockets. That is the usual way we solve problems.

    Instead of taking out corruption and prosecuting those perpetrating it, we took out the toll gates. The corrupt big people involved smiled their way to the banks. We may have clapped for the government at that time for lessening our financial burden (did it really?) and depriving those stealing from the proceeds of further looting; but that has turned out to be pyrrhic. It must have dawned on us now that we have lost to bad roads much more than whatever we could have gained with the dismantling of the toll gates. Is it the losses to vehicle repairs as a result of bad roads; or valuable loss of time due to the same reason? Is it losses of lives and limbs that we cannot even quantify? What of the attendant social costs? These are losses we could have minimised if we had enough money to keep our roads in good condition always.

    So, the terrible state of most of our roads, federal or state, is indication that we need to look beyond government funding to keep the roads in motorable condition. But it is not the fuel levy as envisaged by the senate committee. We know how we got to the point of buying fuel at N145 per litre, the troubles and struggles that went into the new price. Certainly, the Goodluck Jonathan government that the present government succeeded could not have raised fuel price to this level because of the perception of the government as corrupt. What went for the incumbent administration is the integrity, particularly of the president, Muhammadu Buhari. So, even if the Senate was able to pass the bill, implementation would have been difficult for the executive because of the backlash.

    The way out is for government – the executive and legislature – to think out of the box without necessarily adding to the burden of Nigerians. Introduction of N5 levy is definitely not the way to go. Nigerians are not ready to make the kind of sacrifice that the levy portends. Indeed, it is the height of insensitivity for any democratically elected senator to even moot such an idea at this point in time. Just last week, the National Bureau of Statistics (NBS) said about 29 million Nigerians are jobless. Many of those who have jobs are not getting paid as at when due. Factories are groaning due to high cost of foreign exchange and a generally inclement business climate. So, asking Nigerians to part with N5 more for fuel is akin to asking them to donate their blood to fix the roads. Let the senate look elsewhere for money to keep Nigerians moving on good roads.

    One would have been surprised if the senate could not see through that the bill cannot fly at this point in time. And if the senate could not, certainly the executive should have seen the bad faith in it because it is at its desk that the buck stops. Yes, Nigerians would have known the senate was responsible for the bill, but it is the president that would carry the can.

    However, that the senate eventually rejected the bill shows it is beginning to take public opinion seriously. It is unlike the past when it defied public outcry to buy exotic cars for its members at a time the economy was in serious crisis. How far can the Nigerian be stretched on the way to the country’s economic recovery? Although it would not have succeeded in pushing the policy through even if it passed the bill, the senate would have succeeded in further alienating itself and confirming Nigerians’ perception that it is a senate whose members do not know what Nigerians are going through because they can get everything at the snap of a finger.

  • Bayelsa youths support Dickson’s education levy

    Bayelsa youths support Dickson’s education levy

    The Niger Delta Youths Coalition for Peace and Progress (NDYCPP) has hailed the educational policies of Bayelsa State Governor Seriake Dickson.

    News Agency of Nigeria (NAN) recalls that the governor last Friday announced that he had signed the Bayelsa Education Development Trust Fund and Bayelsa Higher Education Trust Fund.

    The laws make it mandatory for every taxable adult, civil servants and corporate bodies to contribute on a monthly basis to the trust funds.

    The fund will be used to run secondary educational institutions and provide revolving loans to indigent students in tertiary institutions.

    NDYPP in a statement by Pastor Olayinka Tiedor and Chief Henry Nabena, acting national chairman and acting state chairman in Bayelsa,  pledged to collaborate with the government to sensitise the public to contribute to the trust funds.

    It noted that the educational programmes of the Dickson  administration were panacea for reversing the state’s backwardness.

    The group said the establishment of Ijaw National Academy, a model boarding secondary school providing scholarship for 1, 000 pupils  from the Niger Delta, was an ambitious effort worthy of support.

    “We support in totality, the educational development levy because of its importance in sustaining quality education at all levels.

    “This will also check youth restiveness by providing opportunity for youths to ensure self development.

    “This wake-up call to give education the priority it deserves is key to the speedy transformation of Bayelsa and indeed the Ijaw nation.

    “Therefore, all hands must be on deck to bring it to fruition irrespective of political party affiliation or tribe.

    “The NDYCPP, a coalition of youth groups across the Niger Delta, with structures in all the states and local governments of the region, remains a viable youth advocacy platform.”

    NDYCPP said it is committed to empowerment of 5, 000 youths in Bayelsa within the next one year.

    It said in collaboration with the Bayelsa Ministry of Agriculture, it had facilitated the participation of 200 youths in the CBN Anchor Borrowers Scheme for Fish/Cassava farmers.

    The body said the target of empowering 5,000 youths was feasible, considering its efforts in agriculture, entrepreneurship development, wealth creation and existing partnership with the three tiers of government and private sector

    It praised the plans of the  government to float Bayelsa Young Entrepreneurship Programme to provide soft loan for youths with viable business ideas capable of creating jobs to decongest the labour market.

    The Ijaw Youths Council (IYC) has urged governors in the Niger Delta to prioritise education and step up investment in education.

    The group was reacting to the foundation laying for Senate building of Niger Delta University by Governor  Dickson in Amassoma, Southern Ijaw Local Government.

    IYC Secretary Mr Parkins Ogede said the governor has taken the bull by the horns in tackling the educational disadvantage of the region by initiating the Education Development Trust Fund (EDTF).

    The organisation enjoined  other governors to emulate Dickson by paying attention to education.

    Ogede said IYC will not hesitate to call out under-performing governments in the region and in extension the Ijaw nation, to take steps to meet the expectations of the people to provide education to uplift the living standards of the people.

     

  • TUC rejects law on social services levy

    The Trade Union Congress of Nigeria (TUC), Rivers State chapter, has kicked against the law on social services levy before the State House of Assembly.

    Its Chairman, Comrade Chika Onuegbu, told reporters that the union and its affiliates would not accept the reintroduction of the controversial social services levy, or any  new tax law in whatever disguise on  workers in the state.

    He said the position of TUC  on the new tax law before the state House of Assembly is clear, saying a court of competent jurisdiction has previously ruled against that law and similar laws.

    He said the union resisted the law under the previous administration in the state, and that the union shall continue to resist it under the present administration as such law amounts to double taxation of the workers.

    The TUC boss said members of the union and her affiliates never paid the social services contributory levy in the state and were also not part of its Board as previously constituted.

    Onuegbu said the planned reintroduction of the law amounted to additional hardship on the workers, stressing that the TUC in the state will resist the planned imposition of additional taxes by the government.

    He advised the state government to limit the collection of taxes to the Taxes and Levies (Approved list for Collection) Act.

    He enjoined the state House of Assembly to concentrate on making laws that will improve the welfare of the workers and ordinary people in the state.

  • TUC rejects law on social services levy

    TUC rejects law on social services levy

    The Trade Union Congress of Nigeria (TUC), Rivers State chapter, has kicked against the law on social services levy before the State House of Assembly.

    Its Chairman, Comrade Chika Onuegbu, told reporters that the union and its affiliates would not accept the reintroduction of the controversial social services levy, or any  new tax law in whatever disguise on  workers in the state.

    He said the position of TUC  on the new tax law before the state House of Assembly is clear, saying a court of competent jurisdiction has previously ruled against that law and similar laws.

    He said the union resisted the law under the previous administration in the state, and that the union shall continue to resist it under the present administration as such law amounts to double taxation of the workers.

    The TUC boss said members of the union and her affiliates never paid the social services contributory levy in the state and were also not part of its Board as previously constituted.

    Onuegbu said the planned reintroduction of the law amounted to additional hardship on the workers, stressing that the TUC in the state will resist the planned imposition of additional taxes by the government.

    He advised the state government to limit the collection of taxes to the Taxes and Levies (Approved list for Collection) Act.

    He enjoined the state House of Assembly to concentrate on making laws that will improve the welfare of the workers and ordinary people in the state.

  • Why people must pay tax, levy, by council chief

    Why people must pay tax, levy, by council chief

    Amuwo-Odofin Local Government Executive Secretary Deaconess Modupe Ajibola-Ojodu,  has reiterated the need for government to pay more attention to the Internally Generated Revenue (IGR) derivable from taxes and levies.

    Mrs Ajibola-Ojodu noted that tax and levies remained the secret behind the socio-economic development of advanced democracies.

    She spoke while introducing a consulting firm, FinaPlus that would be collecting levies from inter-state transporters on behalf of the local government, at the Council Secretariat, Festac Town, Lagos.

    She said: “It is no longer news that Nigeria’s oil is depleting. The reduction in global oil prices and volume demands has now made diversification of the Nigeria economy from over dependence on oil a mandatory policy oil issue. Oil revenue dependence has essentially ‘milked the cow dry’, hence, the decision of the Local government to further look inwards and think outside the box to generate revenue, which is in line with the Lagos State law on revenue generation.”

    Mrs Ajibola-Ojodu appealed to the stakeholders on inter-state transporters to cooperate with the Government in realising her set goals and objectives.

    The Head of Administration of the Local Government, Mr. Shakirudeen Omotayo opined that “the Council needs to generate revenue; one of such avenue is what we are discussing today.  In most developed countries, Local Government survives on IGR.”

    FinaPlus  representatives Adeniyi Abayomi and Salami Femi said the essence of the meeting was to sensitise inter-state transporters on how to improve council’s IGR.

    According to them, “a large number of the stakeholders have agreed that it is right that revenue should be generated by the Local Government. They were also informed that from 1st of March all Inter-State transporters operating in Amuwo Odofin Local Government would pay a levy of N100 per passenger.

  • Expert seeks revocation of N50 stamp duty levy

    Expert seeks revocation of N50 stamp duty levy

    Worried by what he described as the growing level of transparency in the system, a financial analyst, Oluseun Onigbinde, who is also the Co-founder and Team Lead of interactive financial platform, BudgIT Nigeria has urged Nigerians to express displeasure over the N50 stamp duty levy of the Federal Government considering the effect the law would have on the finances of the common man.

    Onigbinde said this during a seminar with the organisation’s consultants from 13 states in conjunction with a number of civil society organisations to keep abreast of happenings with Nigeria’s budget in Abuja.

    According to him, “The law says that there must be stamp duties and the High Court reinforces that. That is good. Understandably, we need to raise non oil revenue. However, this law favours only those in government and their interests.”

    Expatiating, Onigbinde said: “Strangely, people are not demanding accountability from those in government. People are not asking questions, demanding accountability or anything of sort from government. Perhaps, when it hits Nigerians that for every deposit, no matter how small, they will be charged N50, then they will understand the import of the law.”

  • Again, Fed Govt puts 35% levy on used vehicles on hold

    For the fourth time in one year, the Federal Government through the National Automotive Council (NAC), has shifted the implementation of the 35 per cent levy on imported used vehicles. The implementation of the second phase of the auto policy was expected to commence on Wednesday, July 1,2015, but was shifted to an undisclosed date.

    The implementation of the policy was first moved from July 2014 to January 2015, then to April and subsequently to July 1. According to the Director-General of NAC, Aminu Jalal, the implementation of the 35 per cent levy would be on hold until the appointment of new Ministers by President Muhammadu Buhari.

    “We have to wait for the Minister to come. As far as I know, the ministers are not around. When the new Finance Minister comes, we have to brief the person on what we are doing, explain the policy and why we are doing it. The minister will then take up the issue.  He has to give the order before it is implemented,” Jalal explained.

    Recall that Federal Government under former President Goodluck Jonathan had in September 2013 introduced the policy under which it increased the duty payable on imported vehicles to 35 per cent and slammed an additional levy of another 35 per cent, bringing the total to 70 per cent from 20 per cent.

    At that time, Minister of Industry, Trade and Investment, Dr. Olusegun Aganga explained that the policy was aimed at discouraging importation and encouraging local production of vehicles.

    While the new duty rate and additional levy has since been applied on imported new cars, importers of fairly used cars otherwise known as ‘tokunbo’ have been exempted from paying the levy.

  • Adebayor: Levy blocked my Tottenham exit

    Adebayor: Levy blocked my Tottenham exit

    Emmanuel Adebayor has revealed that Tottenham chairman Daniel Levy blocked his exit from the club at the end of the January transfer window.

    The Togolese striker appeared set to leave White Hart Lane after falling out of favour under manager Mauricio Pochettino, making just 11 Premier League appearances in 2014-15.

    West Ham made a deadline day move to sign Adebayor on loan having seen their attempt to recall Mauro Zarate from QPR fail, and the striker was understood to be keen on the prospect of joining the Hammers.

    But the 30-year-old has now revealed that Levy personally intervened to stop any such switch, due to the rivalry between the two clubs.

    The striker told Sky Sports News: “The club decided to send me out on loan, which I was pleased with.

    “I was lucky enough to have five good clubs in my hand. I decided to go to three, and then when I decided the one I wanted to go, Mr Levy was against it, because they’re a rival.

    “He decided I should stay at the club and I’m happy to stay at the club and do my job.”

    Adebayor has scored just two goals in all competitions this season, and has slipped behind Harry Kane – who signed a new contract on deadline day – and Roberto Soldado in the pecking order in north London.

  • NIMASA introduces new levy

    NIMASA introduces new levy

    The Nigerian Maritime Administration and Safety Agency (NIMASA), has introduced a new Marine Environment (Sea Protection) Levy for various types of vessels coming to the nation’s seaports.

    Sources at the agency told The Nation that a letter to that effect was signed in June, this year by its Director-General, Patrick Akpobolokemi.

    The letter, investigation revealed, imposed the following levies: $ 1.25 per gross tonnage on vessels of 100-1000 gross tonnage, $ 1.00 per gross tonnage for ships of 1,001-10,000 gross tonnage, $ 0.75 per gross tonnage for ships of 10,001- 100,000 gross tonnage, and $ 0.50 per tonnage for vessels of 100,001 gross tonnage and above.

    For Nigerian-registered ships, the rate of the levy is N500 per gross tonnage for ships of 100- 1000 gross tonnage, N350 per gross tonnage for vessels of 1,001- 10,000 gross tonnage, N300 per gross tonnage for vessels of 10,001- 100,000 gross tonnage and N250 per gross tonnage for ships from 100,00 I gross tonnage and above.

    The regulation, according to source, said the “rate of levy payable by an offshore installation and oil pipeline shall be (a) in ‘the case of an offshore oil installation that is producing. Processing, storing, or transferring oil, including buoys used for the loading and/or receiving of oil, NI5million, per annum:

    In the case of an offshore oil installation used or constructed for the purposes of exploring for oil, N10million for each oil well drilled by that installation, while in the case of an oil pipeline, N I, 500 per cubic metre of pipeline volume from the high water mark to the termination point offshore,” would be charged.

    A senior official of the agency, who craved anonymity, also said the new levy affects all commercially-operating vessels of l00 gross tonnage and above in Nigerians waters and on oil installations and pipelines.

    The levy, the official said, is charged against ships and is based on the “potential polluter pays” principle.

    The levy, according to him, applies to vessels which are more than 24 metres in length and have onboard more than 10 tonnes of oil in bulk as fuel or cargo.