Bureau De Change operators want to be exempted from VAT, CoT

Bureau De Change operators want to be exempted from VAT, CoT

The Association of Bureaux De Change Operators of Nigeria, ABCON, has advocated for an exemption from the payment of Value Added Tax, VAT, and Commission on Turnover, COT.

ABCON President, Dr. Aminu Gwadabe made this call at the launching of the association’s Automation Portal project held in Lagos.

Speaking on the theme, ‘Digitising BDCs operations for efficiency, transparency and regulatory compliance’, Gwadabe noted that the BDC sector is confronted with many challenges, including multiple exchange rates, abnormal bank charges, VAT and COT, among other challenges.

He said: “The BDC sector is confronted with many challenges that have continued to defile solutions. Some of them include multiple exchange rate, abnormal bank charges, VAT and COT, parallel market operators and illegal International Money Transfer Operators, IMTOs, porous international borders, complex documentation requirements and poor capacity/skills of operators.

“To ensure that the industry overcomes its current challenges, we demand that the CBN exempt BDC from VAT and COT, reduce BDCs annual license renewal fee and also expand their scope of transactions. On deepening capacity/skills of industry operators, we appeal to the CBN to issue Letter of Consent to our proposed training institute.

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“We implore the Police, Directorate of State Service, DSS, to go after the illegal currency dealers. We also implore government to carry out serious public orientation that will warn the public on the dangers of patronizing illegal forex dealers as such is a sure way of building trust, sanity and professionalism to the industry.”

Commenting on the ABCON Automation portal, Gwadebe said the aim for creating the portal is to enhance BDCs compliance with set regulations and promote market integrity.

”The portal will sustain transparent transactions in the BDC corridor, boost the morale of operators and ensure continuous operations in ABCON and that the project came with three layers and stages,” he said.

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