The Federal Government has approved the addition of an electronic monitoring and evaluation framework (M & E) to the current Import Duty Exemption Certificates, IDEC, process.
A statement by the Minister of Finance and the Coordinating Minister of the Economy, Mr. Wale Edun explained that the move is aimed at reducing tax expenditures due to the granting of IDEC.
He disclosed that the policy will provide the Federal Ministry of Finance with a robust automated tool for more effective M & E measurement of the impact of all customs duty exemptions issued by the Ministry to government entities, companies, NGOs and International Organizations.
“This system is designed to provide a framework to check-mate and restrict ineligible applicants, enforce strict compliance to fiscal policy measures and provide a robust impact analysis of tax incentives on the economy. This would further eliminate the misuse of tax expenditures; support the delivery of economic outcomes from fiscal incentives and strengthen the direct measurement of the impact of tax incentives on the economy.
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“Key features of the IMEP include duty claw-back mechanism, e-report generation; a centralized database: factory geo-location tagging: industry qualification status validation; inter-MDA integration; incentive tracking and issuance of Demand Notices to defaulters.
“The aim of the IMEP is to ultimately cut down on the cost of tax expenditure and ensure tax incentives positively impact the economy”, he added.