The Chief Executive Officer of a Calabar-based marine transportation and operations firm, Sea Express Transit Ltd., Mr Thompson Eja, has called for a review of the Value Added Tax (VAT) policy as it concerns water transportation in the country.
Eja, who spoke in a chat with journalists in Calabar on Wednesday about the company’s newly acquired 100-seater executive boat and other marine transportation matters, said the current VAT policy places marine transporters in the country at a competitive disadvantage compared to road and air travel.
The marine expert, who described the current VAT policy as “most ridiculous,” explained that while road and air transportation in the country enjoy VAT waivers, water transporters do not have such privileges, making the business challenging in the country.
“It’s a part of the economy we need to develop and encourage because we cannot afford to build roads anymore.
“We have so many trucks on our roads, and we need to minimise road damage caused by heavy-duty trucks. The way to do it is through rail and water transportation.
“The easiest way to get off the ground is water transportation, but because of the VAT policy, we are at a competitive disadvantage compared to the road and airline industries,” he said.
He said that as Nigeria looks to grow the blue economy, it needs to examine the tax implications of certain decisions, which from a tax perspective, is a pressing issue in the sector.
Eja, whose firm has been operating the Calabar-Oron route for over three years, said that with the acquisition of the new boat, Sea Express would soon begin water transportation from Calabar, Nigeria, to other West African countries with the most secure, comfortable, and affordable fares.
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He added, “Since Sea Express began operations in January 2022, we have not recorded a single incident. We have transformed the channel between Cross River and Akwa Ibom states and made marine travel very attractive for travellers.”
He added that because of its services, the governments of both states have been able to reevaluate the impact of the blue economy on their states.
Eja also expressed strong support for efforts to develop the blue economy in the South-South region, particularly the upcoming deep-sea port project in Cross River and the marine ferry terminal in Oron, Akwa Ibom State.
