In a bid to stimulate economic growth nationwide, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has revealed the federal government’s plans to introduce tax incentive measures aimed at reducing costs and ensuring positive economic impact.
Edun made this announcement while discussing the recent approval to incorporate an Incentive Monitoring and Evaluation Platform (IMEP) into the existing Import Duty Exemption Certificate (IDEC) process.
The IDEC automation, implemented from March 1, 2020, serves as a fiscal incentive by exempting critical players in various sectors of the economy from paying import duty and other statutory customs charges. According to Edun, the objective is to provide the Federal Ministry of Finance with a robust automated tool for more effective Monitoring and Evaluation (M&E) of customs duty exemptions issued to government entities, companies, NGOs, and international organisations.
Edun emphasised that the IMEP is designed to prevent misuse of tax expenditures, enforce adherence to fiscal policies, and provide detailed analysis of how tax incentives impact the economy. By implementing this approach, the government aims to enhance the economic benefits derived from fiscal incentives and improve direct evaluation of their impact.
Key Features Of The Incentive Monitoring And Evaluation Platform (IMEP) include duty waiver clawback mechanism for issuance of demand notices to defaulters to prevent misuse of incentives; E-report generation for streamlined reporting and analysis; establishment of a centralised database for efficient data management; factory geo-location tagging for improved tracking and monitoring.
Industry qualification status validation to ensure compliance with eligibility criteria.
Integration of inter-ministerial departments and agencies (MDAs) for seamless coordination and collaboration.
Edun also announced plans to hold a webinar on Tuesday, April 23, 2024, to provide detailed explanations of the updated IDEC process. This initiative demonstrates the government’s proactive efforts to promote transparency, accountability, and efficiency in the management of tax incentives, ultimately fostering economic growth and development nationwide.
