 Welcome back to Business Insight. We're looking at the new tax regime vis-a-vis how they affect him there. In Oka'a, importation, I'm sub-sector in the country and I'm now being joined by the Acting National President of the Association of Nigerian Licensed Customs Agents, Dr. Coyote Farinto. Many thanks for joining me on Business Insight and plus TV Africa, Dr. Farinto. Good morning, Dr. Farinto. Can you hear us? Good morning. Good morning to you. Let's talk about the new tax regime that was just put forward by the federal government vis-a-vis the 2023 FMPM. There is an existing 5% and 15% of import adjustment tax on new and old vehicles. Do you have any clarification on what this new policy actually means? Number one, there is no clarification yet and we will send a letter to the Honourable Minister of Finance for clarification on this issue. However, we want to believe that it looks as if Bob Bittra is in set up for a new government that is coming on board. And that is why we have issues on the issue of tax regime particularly as it affects used vehicles, imported vehicles and new vehicles. And we are still dealing with the ongoing government to review these taxes and the levy. Now that the Ministry of Finance is bringing out the new levy, everybody is confused. We don't know what that means because there is no explanatory note attached to it. And we send the letter to the Honourable Minister seeking for clarification on this but nobody seems to be happy. Alright Dr Farinto, let me even understand this measure because why would think that before any new policy would actually have been done? Consultations and stakeholders' engagement would have been made concerning the new policy. Are you saying that the federal government did not really consult with some stakeholders in your sector? That is why we believe that the outgoing governments, even though people have rated it well, but in the maritime industry we have never been too happy with most of their policies because nobody engages us. Nobody even seeks our qualifications or input when it affects the results of policies matter. And we just roll out of your policy and by the time you're done backfiring we start looking for a bigger approach. Going forward, one of the things that made us come up actually voted for the incoming government was that going forward you must always take calls along, carriers along before policies are formulated who will now give you advice, professional advice and how the workability of such policies. And we should not also forget that the interests of the Nigerian masses must be put into consideration. Usually we have everything revenue, revenue, taxes, taxes. When you're back now, everybody seems to be overstepping. Look, you have been in more than three, four, five levies and taxes on one particular debt. So who suffers it? Is it partner consumers? So that's why we have seek for clarification on this. And if nothing is done, we will now hold on to the government in some place so that we will believe that there will be clarification soon on the next one. All right. Now, Dr. Farron, I want to understand something still. Over time, since government reviews and taxes, has there been a provision of adequate infrastructure in return for the monies that have been collected from all of these increases that you've had over time on your maritime sector specifically? Nothing like that. Even the roads that have been awarded for resurfacing and rehabilitation, the various contractors working in this road in the last one or three years, it is not completed. It's very, very unfortunate that my time industry is just too big and that's why we stole an idea for the incoming government. It must be unbounded. We have a very large minister of transportation that is too large for being too big for a big sake and not the same to be done. The infrastructure is decayed on a daily basis. Even in the so-called railway, at least our government said they have actually brought for us, nobody said the issue of rail for cargo has not been really emphasized. It's only rail for, maybe, to carry the man behind. So every developing country must look at a three-way system for the transport system. You look at the road, you look at the rail and you look at the waterways and the badges. And that's why we say there must be a more modern transport system. The incoming government must look at this so that if you unbundle all these things, the issue of taxes, the revenue we're rolling out, once there's convenience of people and there's value added service, you do not need to bring in unnecessary adjustment taxes. The slummet on Nigerians are because you want to generate terrible news. So the infrastructures are not there. I'll tell you that. And it's very, very disturbing. That's by the fact that the port has been concessioned in the last 10 or 15 years. There's no value added. I just want to commend Nigerian portals who are still, despite all this decaying infrastructure, still bringing their consignment to a waterway. Let me still return the issue of infrastructure. Before we talk about other salient issues of plaguing your sector. Over time, coming into Papua Axis has actually been a major challenge. There's been so much going on in terms of promises and policies and then projects. How would you say on a daily basis, as all of that impacted on services of customs agents in the Papua Axis? Yes, time has always been wasted. Before now, the Nigerian port authority is a magic one. And we had a trip to Papua on a few weeks ago. In the last two, three weeks now, you've been having congestion and grizzled on a longer corridor because they are repairing the part of the road. And that is why everybody leads to... When you want to repair roads at times, you need to carry out, carry a long stakeholder. Even when they want to restore the road, you do that at night. So that car goes when you want to exit the port. Exports when you want to move into the port. Even vehicular traffic will not be seen at school. Now, everything seems to be jammed back. For you to come into Papua now, take some over at Kunitaks. I see we are going back to what Rebecca Lee came out from at the last point. This is very, very discouraging. It's very, very disheartening to see that Nigeria, governments, every successive government seems to be only looked over. I don't know how to look at it. And all they are interested in is revenue, the taxes, whatever you do. The issue of infrastructures are not mutual. What is called a development plan? We will be able to investigate in the next ten years. This is what government is coming up with. We do not even have a full development plan. We don't even have it. What happens to them? My example is in the next five years. No, it doesn't exist. Everywhere in the world, talking about this civilization, we are only celebrating high-mode days and all these other days. And when it comes to the days, we celebrate them. Problematically, the government seems to be very far from the citizenry. It's not so good. It's very, very discouraging. And time is money. My time is also. The moment your time is wasted, you won't be able to position container for examination. You won't be able to deliver to the consignee. And that's on one part. On the other part, we actually spoke to the government that bringing scanner, this is non-intrusive equipment so that it will discourage 100% examination of cargo who will be able to deliver cargo outside. This so-called scanner that we purchase as scanner that cannot even identify psychotropic substances, it may not be able to identify even when it got into the container, let it learn the contraband. And we move forward. All right. Who was actually giving this contract of scanner? So it's on very well for the LIC. My time is just too big. Under a ministerial transportation. It must be unbounded. It must be unbounded. All right, Dr. Farinto, let's just move on for the sake of time now. Last year, the Nigerian Customs Service withdrew the Controversial National Automative Council levy on imported used vehicles, though it retained its 5% add-on tariff. Can you walk us through what it takes to get a vehicle from port, vis-à-vis all of the payment duties that law with customs are so far? It depends on the kind of vehicle. What kind of vehicle? Use one, lean one. Don't forget that there is a federal government policy that said any vehicle that is the most serious could come in, meaning that it is only a vehicle of 2014, or there about that can come into light here. And if you have a 2014 state Toyota Corolla for instance, the first thing you do is to get a V-Rex. The V-Rex is under the financial finance and it depends on the cubic capacity. A Corolla cannot pay less than 5,000 naira. For you not guys of V-Rex, you're not applied to crosshomes for wing valuation. On your wing valuation, you may be paying almost 800,000 naira or there about on the 2014 Corolla. You've never heard that. The two-duty and everywhere the past. Minimum of 1.2 million naira, total duty pay. Now, I won't pay that, now go through the examination before the cargo is ready. When the wing valuation was built, I did tell them that if the wing valuation is very good, let's make it similar. Similar to the decision that I had in Corolla 2014, I have declared to the system and I paid what the system give to me. It should be auto-released. But what customer does is to reverse when I'm back, when I say go and meet an officer, who now conducts an examination, goes for the manual review before this is passed, before you are able to get your cargo or release the supreme company and maybe some naira will give you some naira will give you other naira access container. That means the cargo or the vehicle. And as you are still reviewing... Mr. Farid, are you still with us? Yes, I'm with you. So, this has a phase and it has a process in which we will be able to pay the boom break. And as we are doing that, let me go and say this is just introducing CVT again and they call it something vehicular type. So, maybe you were one word two days ago and there's a way of clamoring that. All right. Dr. Farid, I just need to put one word in Adria as we wrap up very quickly. I just want to get some reason for this in 30 seconds. From what we hear from reports, the association has rejected the 20% reduction in tariff being put forward by the two companies in the aviation industry. We have the Skyway Aviation Handling Company, SACO, and the Nigerian Aviation Handling Company, NACO. Can you explain for that just very quickly as we round off? Yes. What people are saying is that we are not saying it should not increase. There must be infrastructure and equipment. With the two grand handlers in the airport, it's only SACO that has equipment, nearly both equipment. NACO does not seem to have. They only tell us that they have imported some more. And it must increase. Let it not be 100%. What people are promoting for it? Let there be an increment, maybe by 50%. So they will be able to take it back to the consignee or the owner of the cargo that has an increment in your handling tariff and cargo tariff and the grand handler. But they are insisting that they will only give 20%. Our people are not shifting grand. They are also saying that what you are increasing does not compensate what is on grand and you do not have the handling equipment. That's why there is a span still now. All right. Thank you so much. We do appreciate your time. We have been speaking with Dr. Coyote Farinto the acting president of Ankar, the association of licensed customs agent. We do appreciate your time on the show today. As we go on the show now, youth unemployment remains one of the defining challenges of our time. Not just in Nigeria, but across West Africa and beyond. Addressing youth unemployment means finding solutions with young people who are seeking a decent and productive job, working but leaving in poverty or are discouraged by current labor market prospects. 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