News Investigators/ The Association of Bureau De Change Operators (ABCON) on Thursday sought the exemption of excise taxes on foreign exchange transactions.
The News Agency of Nigeria (NAN) reports that excise duty is a tax charged on manufactured goods; levied at the time of manufacture.
Its President, Aminu Gwadabe, made the request at the House of Representative’s Public Hearing on Tax Reform Bill in Abuja.
Mr Gwadabe, represented by the Chairman, North Central Zone, Mr Thomas Okoye, prayed the lawmakers to exempt excise taxes on transactions by licensed and regulated Bureaux De Change (BDCs) to avoid over-generalisations.
Mr Gwadabe warned that excise tax on foreign exchange transactions would exacerbate the exchange rate volatility in the market if applied to licensed bureaux.
“The policy lacks clarity as the excise tax is on parallel market activities.
“It will be transferred to end users; it would worsen inflation as we depend highly on importation,” he said.
The BDC President also warned that excise tax on foreign exchange transactions would lead to unemployment.
Mr Gwadabe also sought a review of the new Central Bank of Nigeria (CBN) capital financial requirements of five hundred million naira and two billion naira category for BDC licensing.
Also speaking, the Comptroller-General of Customs, Bashir Adeniyi, solicited closer collaboration with the Nigeria Export Processing Zones Authority (NEPZA).
Mr Adeniyi said that such collaboration would enhance efficiency in the supervision and regulation of the movement of goods into Nigeria.
NAN reports that the three-day Public Hearing on the Tax Reform Bill by the House of Representatives has come to an end.
NAN
