Expatriate Employment Levy taxation policy should not be halted.

The Federal Government unveiled the EEL on February 27, 2024, as part of a new taxation regime targeting companies employing expatriates.

Under the policy, companies would pay $15,000 (approximately N23 million) annually for expatriates at the director level and $10,000 (approximately N16 million) for non-director expatriates.

The Programme Implementation Coordinator for the plaintiff, Raphael Ezeh, deposed in an affidavit that the proposed levy imposes severe penalties for non-compliance. These include:

He stated, “According to KPMG and other online information analysts and dissemination agencies, the Federal Government intends to compel all companies and organisations who engage the services of foreign expatriates to pay tax E.E.L. as follows:

The Federal High Court in Abuja has summoned the Minister of Interior, Dr. Olubunmi Tunji-Ojo, and the Attorney General of the Federation, Mr. Lateef Fagbemi (SAN), to justify why the implementation of the proposed Expatriate Employment Levy taxation policy should not be halted.

Justice Inyang Ekwo issued the order on Thursday while ruling on an ex-parte motion filed by the Incorporated Trustees of New Kosol Welfare Initiative.

The suit, marked FHC/ABJ/CD/1780/2024, lists the Minister of Interior and the AGF as the 1st and 2nd defendants, respectively.

The plaintiff, represented by a team of lawyers led by Paul Ajayi, and with Patrick Peter moving the motion, is seeking an interim injunction to restrain the defendants and their agencies from implementing the EEL pending the determination of the substantive suit.

Justice Ekwo directed that the defendants be served with the motion within three days and ordered them to show cause on the next hearing date why the plaintiff’s prayers should not be granted. The matter was adjourned to January 16, 2025.