All Posts in "Day: July 27, 2022"

NEPZA, FIRS agree to adjust FTZs new tax system

By Favour Nnabugwu

 

The Nigeria Export Processing Zones Authority (NEPZA) and the Federal Inland Revenue Service (FIRS) have agreed to adjust some sections of the recently signed Memorandum of Understanding (MoU) on the efficient management of the free trade zones tax system in order to accommodate salient concerns of the stakeholders.

The Managing Director, NEPZA,. Mr. Adesoji Adesugba, explained that the event was to make adjustments where necessary on how the FIRS and NEPZA would treat tax issues relating to business interactions within the free trade zone ecosystem.

He noted that section 5 of the MoU had given parties the leverage to call for the amendment of the tax guidelines when necessary.

“The Authority’s recent diplomatic advances with sisters agencies, especially, the FIRS can only be described as a game changer. We now see ourselves as partners in progress.

“We have always insisted that the free trade zone scheme must be allowed to succeed as that truly remains a potent economic instrument for widespread growth and development.

“Therefore, we have agreed to adjust the tax pact to capture some of the salient concerns of the stakeholders.
“The Authority will not sheer away from protecting the scheme and those who have invested billions of dollars in the scheme. We are delighted that the FIRS has become our advocate in this regard.

” We are also happy that the administration of President Muhammad Buhari has given us the impetus through his favourable policies to deepen the growth of the scheme,” he said.

Recall that the agencies on June 7 signed the tax pact to reconcile all grey areas in the administration on issues bordering tax deductions from free zones and enterprises operating in the zones respectively.
The agreement to adjust the MoU was reached on Wednesday during a roundatable where the document was formally presented to the stakeholders in Lagos.

A cross section of the Stakeholders had raised concerns on some sections of the guidelines as according to them, those sections contravened some provisions of the NEPZA Act for operators in the free zones.

The Executive Chairman of the FIRS  Alhaji Mohammed Nina had promised to evaluate the concerns of the stakeholders, adding the document was a flexible guideline on how to administer the MoU.

Represented by Mr Mathew Gbonjubola, the Coordinating Director of the service, Nina said that not all the concerns raised were genuine, adding that the FIRS was knowledgeable enough on issues around free trade zone tax administration.

Nina explained that the service would not unduly interrogate tax remittances of enterprises with full status of free trade zones, adding that the service would, however, always insist on remittances of returns, Valued Added Tax (VAT), and Withholding Tax, respectively.

He further noted that all other issues raised on the tax pact would be addressed within two months.

On his part, Chief Toyin Elegbede, the Executive-Secretary of the Nigeria Economic Zones Association (NESA), said that the forum became important to address the concerns of his members on the tax administration pact signed between NEPZA and FIRS.

According to him, “The discussions from forum elicited hopes and assurances on the commitment of government to support the in-flow of Foreign Direct Investment (FDI) through the free trade zone scheme.
The forum was attended by Chief Executives of free zones, enterprises, contractors, consultants and other key stakeholders.

Patoma Admin by — July 27, 2022 in Industry, Trade & Investment 0
Africa Re partners Finance Ministry, IFE for meeting in Egypt

By Favour Nnabugwu
Africa Reinsurance Corporation, Africa Are, Africa’s first continental reinsurer is in parternship with the Ministry of Finance, Insurance Federation of Egypt (IFE) for a meeting in that country.
The Chief Executive Officer of African Re, Egypt, Mr Gamal Sakr noted that Egypt’s hosting of the company’s meetings asserted the great importance of the state on the global and African levels and the country’s attractiveness for hosting the meetings of regional financial institutions.
Sakr also explained that the meetings are expected to discuss the company’s financial results in 2021, its performance in African markets, and other topics that relate to the insurance and reinsurance industries in light of the challenges imposed by the ongoing global crisis.
African Re was established in 1976 as part of an initiative that was adopted by 36 African countries. The company operates through six regional offices in Côte d’Ivoire, Egypt, Kenya, Mauritius, Morocco, and Nigeria.
For the first time in the local market, the Financial Regulatory Authority (FRA) is considering okaying the creation of a reinsurance company with a minimum capital of EGP 1 billion with insurance companies operating in MENA as shareholders
On his part, the Minister of Finance, Mr.  Mohamed Maait the choice of Egypt for the Africa Are meeting was step in the right direction.
“Choosing Egypt for hosting these meetings reflects the country’s position in Africa and its supportive role to economic, political, and cultural African issues. It also mirrors Egypt’s endeavour to enhance and support the leading role Egypt plays in the continent, which is increasingly important amid the current challenging times,”
Maait also noted that the ongoing global crisis has created numerous challenges, but also has presented a bunch of opportunities for greater African cooperation in several sectors — especially in economic areas — as the majority of African economies are offset by the vulnerability of local savings and investment levels that require attracting more direct and indirect foreign investment in order to achieve their economic growth.
“In this regard, African Re can play an important role through its direct investments and its services in the field of reinsurance, as it provides a protection umbrella for African companies that are operating in this field”
“Also, the company is the largest in Africa and the Middle East, as it ranks the 39th among grand reinsurance companies globally and places 42nd in the 50 best global groups in the reinsurance industry,” Maait expounded.
Patoma Admin by — July 27, 2022 in Insurance 0