The Minister of Interior, Olubunmi Tunji-Ojo, and the Attorney-General of the Federation (AGF), Lateef Fagbemi, have been ordered by a Federal High Court in Abuja to appear before it within three days.
This order came after the Incorporated Trustees of the New Kosol Welfare Initiative sued the minister and the AGF in court and sought an order of interim injunction from the court to restrain the implementation of the new Expatriates’ Taxation Regime known as the ‘Expatriate Employment Levy (EEL) in Nigeria.
The EEL is a proposed taxation policy of the Federal Government compelling organisations that engage the services of expatriates to pay levies depending on the professional level of the expatriate.
For instance, companies seeking the services of expatriates at the director level will be mandated to pay the sum of $15,000, which, converted to naira, is equivalent to N23 million based on the current exchange rate.
The levy is slightly lower for expatriates at the non-director level. For them, the levy is pegged at $10,000, which is approximately N16 million.
Failure to pay the levy before its expiry date will attract a N3 million fine.
One of the group’s programme implementation coordinators, Raphael Ezeh, noted that the proposed levy is not in the people’s interest.
“The proposed taxation regime is totally an anti-people policy because of its radical effect on different aspects of the Nigerian economy, and it works like a choke-hold against the economic growth of the nation,” said Ezeh.
While addressing the court, Ezeh said that if the minister and the AGF are not restrained by a court order, they would commence implementation of the levy and threaten the country’s economic sustainability.
Justice Ekwo ordered the group to put the minister and AGF on notice of the ex-parte application within 3 days of the order.
“Upon being served, the defendants are hereby ordered to show cause why the prayers of the plaintiff ought not to be granted on the next date of hearing.”
The judge also adjourned the case until January 16.
