FEC approves tax waivers automation platform

By Lawrence Olaoye

The Federal Executive Council (FEC) has approved the automated platform for the issuance of Import Duty Exemption Certificate (IDEC) as well as vehicle identification and registration number.
Speaking to State House correspondents after the Council meeting chaired by the Vice President, Yemi Osinbajo, Minister of Finance, Budget and National Planning, Zainab Ahmed, said that the automated process would enhance efficiency, block leakages and reduce the amount of time it takes to review exemption request and provide the necessary approvals.
The Federal Government had announced early in the year that it lost N4.6 trillion from waivers granted to importers in 2017 and 2018.
The loss came as a result of the ministry not implementing the IDEC project. It had said it hoped to cut the huge revenue loses to the tune of over N2 trillion due to manual processes.
Ahmed said: “Today the ministry of finance sought the approval on a project which is designed to manage an automated gateway platform for the issuance of import duty exemption certificates as well as vehicle identification and registration number. The Federal Ministry of Finance, Budget and National planning is responsible for the ministry and the country’s national finance and one of our responsibilities is implementing fiscal incentives that are used to attract investors to promote non-oil exports as well encourage encourage industrialization programme and stimulate growth in the economy.”
The vehicle identification and registration number, Ahmed said will be available to any user to access and find out information on vehicles.
According to her, “On our part, on the IDEC component, we will be able to see how much waivers have been granted to which sectors and also track the performers of those waivers and reduce the cost subsequently.”
“The portal is undertaken in the form of a Public Private Partnership (PPP) arrangement with Forecore Technology Solution Limited, as the preferred partner to Develop, Deploy, Manage and Transfer for a 10-year concession period before transferring back to the ministry . “They are to earn revenue which is coming from IDEC application fee. We are going to share the revenue in the promotion of 90 percent to the government and 10 percent to Messers Forecore Technology Solution Limited. They are earning this 10 percent to enable them recover the cost of deployment as well as the management because they will also be the ones managing the project over this 10 year period.”
Meanwhile, the Minister of Works and Housing, Babatunde Fashola said the cabinet approved the sum of N40.451 billion for road contracts in Ogun- Oyo and Kano states.
Also, the Minister of State, Health Senator Adeleke Olorunnibe Mamora said that the council gave approval for contract under the Ministry of Health for the purchase of 15 operational vehicles by NAFDAC at the cost of N307.562 million which essentially are meant to improve mobility.