One of the critical objectives of the IMEP is to provide a framework that will prevent ineligible applicants from receiving tax benefits, enforce compliance with fiscal policy measures, and offer a comprehensive analysis of the economic impact of tax incentives.
The announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, in a statement on Monday.
He said the IMEP aims to revolutionise the way the ministry measures the impact of customs duty exemptions granted to government entities, companies, Non-Governmental Organisations, and international organisations. By implementing a robust automated tool, the ministry aims to improve the monitoring and evaluation of these exemptions.
According to the statement, the IMEP has several notable features, including a duty claw-back mechanism, electronic report generation, a centralised database for tracking, factory geo-location tagging, industry qualification status validation, integration with multiple government agencies, and the issuance of Demand Notices to defaulters.
By doing so, the statement noted that the ministry hopes to curb the misuse of tax expenditures, support the realisation of economic outcomes from fiscal incentives, and enhance the direct measurement of tax incentives’ effects on the economy.
“The system is designed to provide a framework to check-mate and restrict ineligible applicants, enforce strict compliance with fiscal policy measures, and provide a robust impact analysis of tax incentives on the economy,” the statement added.
Overall, the introduction of the IMEP represents a significant step towards reducing the cost of tax expenditure and ensuring that tax incentives have a positive impact on the Nigerian economy.
The statement furthered that the initiative is part of the government’s commitment to fostering transparency, accountability, and efficiency in the management of the nation’s resources.
