FG reduces tax expenditure costs and introduces incentives
The federal government said it plans to secure tax incentives aimed at reducing tax expenditure costs and having a positive impact on the economy.
The Ministry of Finance disclosed this in a statement from Spokesperson Mohamed Manga on Monday.
Mr Manga said that to achieve this, the Minister of Finance and Coordinating Economic Affairs, Wale Edun, recently approved the inclusion of the Incentive Monitoring and Evaluation Platform (IMEP) in the current Import Duty Exemption Certificate (IDEC) process. Stated.
He added that IDEC Automation, introduced on March 1, 2020, is a financial incentive by the Federal Government under the Ministry of Finance to boost the economic sector.
Manga said FG aims to achieve this by exempting key players from paying import duties and all other statutory duties respectively.
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“This is a powerful automated tool for the Federal Treasury to more effectively monitor and evaluate (M&E) the impact of all tariff exemptions issued by the Federal Treasury to government agencies, businesses and non-governmental organizations (NGOs). ) and international organizations,” Edun said.
Edun said the system is designed to provide a framework to exclude and limit unqualified applicants.
It also helps enforce strict compliance with fiscal policy measures and provides robust economic impact analysis of tax incentives.
He said this will further eliminate abuse of tax expenditures and support the delivery of economic results through fiscal incentives.
The Finance Minister added that this will strengthen the direct measurement of the impact of tax incentives on the economy.
He cited the duty-free clawback mechanism for issuing dunning notices to defaulters as a key feature of IMEP.
He said this will prevent misuse of issued incentives, generation of electronic reports, centralized databases and tagging of factories' geographical locations.
Mr Edun said it would also be useful in the areas of industry qualification status verification and inter-ministerial integration (MDA).
The Minister said a webinar will be held on Tuesday, April 23 to clarify the revised IDEC process.
Source: guardian.ng