General News of Wednesday, 15 January 2025

Source: www.mynigeria.com

NiDCOM rejects advice to impose $500 Detty December tax

The photo used to illustrate the story The photo used to illustrate the story

The Nigerians in Diaspora Commission (NIDCOM) has rejected an advice to impose a tax of $500 on Nigerians returning to the country to enjoy the Detty December festive period.

Last year Detty December saw an influx of diaspora Nigerians and also foreigners who saw Lagos as an entertainment center and a place to unwind as the year ended.

This prompted one Chief Dokun Olumofin to write a letter to President Bola Tinubu proposing a $500 tourism tax to be paid by the Nigerians returning home for Detty December.

Reacting, NiDCOM's Director of Media, Public Relations and Protocols Unit, Abdur-Rahman Balogun, said the advice is potentially exploitative, adding that such proposal is counter productive.

In a statement , Balogun said imposing such a tax would rather discourage than encourage many Nigerians planning to come home.

He said, "Such advice will no doubt mitigate the efforts of the Diaspora Commission in encouraging the diasporans to visit home, invite others, and invest.

"Besides, the remittances of the diaspora in 2024 alone was the highest so far into the economy. They have been investing massively in various sectors of the economy.

"The said N54 billion that Lagos hotels alone raked in December 2024, according to a report by an advisory firm MO Africa Company Limited, is domiciled in the Nigerian economy, so why tax Nigerians coming to their country for various reasons and promoting their country positively?

"Such advice is also seen by NIDCOM as some sinister move to damage the image and revenue streams of the government just as its enforcement will equally pave the way for corruption."

He said NiDCOM believes that the government does not need to issue direct tax as it is already raking in money through channels of indirect taxes on all visitors through entertainment and other sundry services.

"The role of government in providing critical infrastructure , such as security, and ease of transportation, as seen under the Renewed Hope agenda of President Bola Ahmed Tinubu should rather be encouraged and sustained, while the diaspora organically continues to return home and contribute to the nation’s growth and development.

"NIDCOM reiterates that the government should continue to provide an enabling environment for all , which encourages the diaspora to come back home for holidays and invest more in the country.

"NIDCOM also commends the Lagos state government for providing a world-class environment for diasporans and Tourists in general , projecting that the numbers will continue to grow while encouraging all states to do the same," he said.

He concluded by stating that it is pathetic to note that while the world is lowering barriers to get more inflows and tourists into their country and economy, Chief Olumofin is suggesting increasing costs and raising barriers for Nigeria.