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Anxiety grips firms over unpaid N15.5bn outstanding duties, rates

By BusinessNews Staff on October 25, 2014

As the two-week ultimatum issued by the federal government to 12 firms to pay all their outstanding duties and taxes, which currently stand at over N15.5 billion draws nearer, the defaulting companies are said to be under intense pressure to raise the money.

Already, the federal government is considering blacklisting the 12 firms for contravening the conditions attached to the Fast Track Scheme (FTS), a system created to reduce delay in the release of consignments.

The defaulting firms are MV Onome and Oritsemeyin (Calabar) with the highest outstanding duty liability of N3.579 billion; Dana Motors, with a debt of N2.211 billion; Saipem/ Total with a debt of N2.001 billion and BUA, which has N1.853 billion debts to remit to the government.

others are Hyundai Motors (N1.688 billion); Stallion Motors (N1.073 billion); Axxis Petro Consultants (N858.457 million) and Arik Air (N845.676 million).

Following complaints about the cumbersome processes adopted for clearing of goods from the nation’s seaports, airports and international borders, the FTS was created by the federal government to ensure prompt release of consignments.

The scheme, which is under the watch of Nigeria Customs’ Service (NCS) was meant to facilitate smooth clearance of goods of compliant importers, especially multinational and institutional importers with good track record of not being involved in any sharp or criminal practice.

The initiative was sequel to a World Bank report, which said Nigeria was one of the most difficult and expensive countries to do business in the world.

However, the 12 firms were alleged to have constantly contravened the rules guiding the FTS process. Specifically they were punished for their failure to comply with a two-week ultimatum to pay their outstanding duties and taxes put at over N15.5 billion.

The Customs high command, in a public notice issued and obtained by THISDAY, said the 12 companies have continued to abuse the FTS by refusing to pay appropriate duties and taxes due to the federal government.

Giving an insight into the decision taken by the federal government, the Customs said: “The Nigeria Customs Service notes with regret that despite the efforts put in place to ensure smooth clearance procedure, where companies are allowed to carry their cargoes on fast track lane to facilitate trade and cut costs to consumers, the under-listed beneficiary companies have continued to abuse the spirit of these arrangement by refusing to pay appropriate duties and taxes due to the federal government.”

According to Customs, all efforts by the management to recover the duties and taxes owed by the companies have not yielded any result.

To ensure the affected firms comply, NCS said the service was constrained to issue a two-week ultimatum effective from the day of this publication to all affected companies to come and pay all their outstanding liabilities or face legal sanction.

[This Day]

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