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FG to recruit touts, maritime haulage tax reform marshals

By Adaku Onyenucheya
09 October 2024   |   3:40 am
As part of efforts towards reforming tax collection in the maritime haulage sector, the Federal Government has announced plans to recruit and train touts as marshals for tax collection and enforcement under the Value Added Tax (VAT) Direct Initiative (VDI).
[FILES] Trucks parked on the road side waiting to get access into Tincan port in Apapa, Lagos. (Photo by Benson Ibeabuchi / AFP)

As part of efforts towards reforming tax collection in the maritime haulage sector, the Federal Government has announced plans to recruit and train touts as marshals for tax collection and enforcement under the Value Added Tax (VAT) Direct Initiative (VDI).

The programme is designed to streamline tax collection, reduce extortion on highways and ensure proper toll collection from haulage operators on major routes across the country.

Recall that truckers had decried the continuous extortion and harassment from state and non-state actors, which have led to severe injuries and deaths of truck drivers and conductors.

The Guardian reported that there are over 60 checkpoints from Ijora Olopa to Apapa port and Mile 2 to Tin Can Island port, where truck drivers pay between N1,000 and N20,000 daily from the 3,000 trucks accessing the two ports in Lagos.

Also, each trucker is forced to pay about N130,000 on extortion, totalling N390 million per day for the 3,000 trucks to access the Lagos ports, as the extortionists use dangerous tactics to collect the money without minding the lives at risk.

The Relationship Manager for the Road Haulage VAT Direct Initiative and Single Sticker System, Mr. Festus Ukwu, who confirmed this development, explained that the initiative aims to combat illegal tolls and extortion from truck drivers, often perpetrated by unauthorised groups across major routes in the country.

Ukwu elaborated on the challenges that previously plagued the sector, with drivers facing constant harassment at various illegal checkpoints.

According to him, these extorted sums, intended for government revenue, were instead diverted into private pockets.

He said to address this, the government has introduced the VDI and a unified single sticker system, which allows haulage operators to make a one-time payment, obtain a sticker and then transport their goods without facing further harassment throughout their journey.

“The government wants to harmonise tax collection, so they can capture more revenue that was previously lost to illegal collections. The number of taxes has been reduced from over 200 to just 10, making it easier for operators to comply,” Ukwu stated.

He further stated that the initiative is set to employ former touts, who will now be recruited as tax enforcement marshals, working alongside the police and VDI officials.

Ukwu said these marshals will receive training and a legitimate salary, ensuring they transition off the streets and into lawful employment.

Ukwu acknowledged that while enforcement is still being strengthened in certain areas, such as the notorious Tin Can–Mile 2–Agbara corridor, significant progress has already been made with the arrests of illegal toll collectors by the Lagos State Taskforce.

Over 120 individuals were recently detained across key areas, including Apapa and the Lagos-Badagry Expressway.

“Many of these touts collect money from truck drivers who are being paid by the freight forwarders or importers, but they don’t pay tax to the government. When you have the Single Sticker System and load from Lagos going to anywhere in the country, immediately you pay, and you have that sticker nobody stops you till you get to your destination in the country. There will be nothing like those touts again trying to stand on the road,” he explained.

The Secretary General of the Association of Maritime Truck Owners (AMATO), Mohammed Sani, praised the introduction of the unified sticker system, highlighting its potential to alleviate the financial burden on truck drivers and owners.

Sani said the truckers are forced to pay tolls or purchase stickers repeatedly under the old system, as they transport cargo across state borders, particularly from southern states to northern regions.

Sani sees the new system as a way to close the loopholes that previously inflated operational costs for truckers, as the payments ultimately impacted the overall profitability of the trucking business.

He said the system will allow truckers to reinvest their earnings into maintaining their vehicles, as well as focus on vehicle maintenance and business growth.

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