Tinubu’s Tax Reform Bills Will Kill Free Trade Zones In Nigeria, Operators Cry Out
The plan to eliminate Free Trade Zones (FTZs) in Nigeria has sparked another controversy as stakeholders warn that Nigerians will suffer the consequences.
The Secretary of Nigeria Economic Zones Association, Tony Elegbede, said investors in the FTZs will exit Nigeria to Ghana, Benin and other neighbouring countries.
Elegbede said this on Thursday in an interview on Arise TV, monitored by THE WHISTLER.
The warning comes in the wake of the hearing on the Tax Reform Bill, which proposes the elimination of Free Trade Zones.
The Nigeria Tax Bill 2024 intends to impose new tax obligations on operators of FTZs.
The tax bill introduced mandatory minimum tax rates and eliminated tax exemptions previously granted under the Nigeria Export Processing Zones Authority (NEPZA) and Oil and Gas Free Zones Authority (OGFZA).
The tax committee argues that the bill will create a level playing ground for freezone and the manufacturers in the Nigerian custom territory.
He said Nigeria has benefited from the Free Trade Zones for 30 years but lamented that the tax bill “seeks to now shift the goalposts in the middle of the game.”
According to him, the tax bill 2024 seeks to shift burden of importers to the free zone enterprises and management.
Elegbede said free zones contribute to the national treasury and job creation.
Elegbede said, “Our position is that free zones are established in Nigeria for a purpose to stimulate economic activities and promote SMEs, create jobs, bring in foreign direct investments, and that has been the practice since freezones were created.
“They have been overstressed. And if this bill is passed as it is, then we are saying bye-bye to freezones in Nigeria.
“The thing is that Nigeria will lose. There will be job losses. There will be capital flight. And our neighbouring countries are waiting. They are waiting to accept our investors with friendlier policies. And that has been our problem, that has been our position.
“So instead of attacking free zones and free zone incentives, I think the Nigerian government should concentrate on making the business environment in Nigeria Custom territory more attractive and which will make them more productive.”
The free zone association secretary claimed that FTZs in Nigeria are not very profitable due to lack of incentives.
Elegbede alleged that the Chairman of the Presidential Tax Reform Committee, Taiwo Oyedele lacks an understanding of the operations and benefits of FTZs in Nigeria.
“Mr. Taiwo Oyedele, who was at our annual general meeting last week in Lagos, was meeting with investors as a group for the first time. If they consulted us prior to drafting the bill, there are ways they would have.
“I doubt if he (Taiwo Oyedele) has visited any other free zones.”
Tinubu’s Tax Reform Bills Will Kill Free Trade Zones In Nigeria, Operators Cry Out is first published on The Whistler Newspaper
