The unveiling of the Incentive Monitoring and Evaluation Platform (IMEP) by the Federal Ministry of Finance marks a significant milestone in enhancing the supervision of tax expenditures related to import duty exemption certificates.
On Monday, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the announcement about the launch.
This initiative is part of a comprehensive strategy to reduce tax expenditures and ensure that fiscal policies are effectively supporting the economic growth of the nation, stated the minister.
The IMEP is set to transform how the Federal Ministry of Finance tracks the impact of customs duty exemptions granted to various entities like government bodies, corporations, NGOs, and international organizations, according to Edun.
Implementing a robust automated system, as per Edun, is aimed at enhancing the monitoring and evaluation process for these exemptions.
The features of IMEP include a duty claw-back mechanism, electronic report generation, a central database for monitoring, factory geo-location tracking, validation of industry qualification statuses, interconnection with multiple government bodies, and issuing notices to defaulting parties.
Edun highlighted, “The IMEP is crucial in establishing a framework to prevent ineligible individuals from benefitting from tax exemptions, enforcing compliance with fiscal policies, and providing a detailed assessment of the economic influence of tax incentives.”
The main goal is to prevent misuse of tax expenditures, to actualize economic benefits from fiscal perks, and to accurately gauge the effects of tax incentives on the economy,” expressed Edun.
According to Edun, the system’s primary objective is to scrutinize and restrict ineligible applicants, ensure strict adherence to fiscal policies, and conduct a thorough impact analysis of tax incentives on the economy.
“In essence, the rollout of the IMEP brings a critical step in lowering tax expenditure costs and guaranteeing that tax benefits positively contribute to Nigeria’s economy. The government’s commitment to promoting transparency, accountability, and efficiency in resource management is exemplified through this initiative,” he elaborated.