The Nigeria Export Processing Zones Authority (NEPZA) has signed a memorandum of understanding (MoU) with the Federal Inland Revenue Service (FIRS) for the effective administration of taxes in free trade zones (FTZs).
The MOU was signed on Tuesday in Abuja.
Speaking at the signing event, Muhammad Nami, executive chairman of FIRS, said the importance of the agreement was to foster greater collaboration between the two agencies.
He said the intention was to promote the smooth operation of activities or approve enterprises in the zones and ensure effective administration of taxes applicable in the operation of zones under NEPZA.
“Reason why we have been a bit careful, is that we have two mandates and the mandates are conflicting,” Nami said.
“FIRS is asked to generate revenue for the government to be able to fund its budgetary requirements.
“This is also for the government to be able to provide social amenities, critical infrastructure and ensure the security of lives and properties.
Nami, noted that NEPZA was tasked with attracting investments, hence the need for this collaboration “so that we don’t disagree in the course of pursuing our respective mandates.”
The FIRS boss said while FIRS would ensure that her operations and processes would not hinder the smooth operation of the approved enterprises, it is expected that they would be prompt in filing tax returns.
He said that FIRS would have access to the zones to conduct tax compliance checks at periodic intervals in line with the MoU.
According to him, if there are any challenges, they would be resolved with the speed of cordiality.
On his part, Adesoji Adesugba, managing director of NEPZA, said that the MoU is aimed at unbundling and strengthening the tax schedule for compliance purpose in line with section 19 of the NEPZA Act.
He added that the importance of growing the country’s zones in order to grow the nation’s economy could not be overemphasised.