A member of the OPS has warned that more manufacturers might be in the process of shutting down, if government fails to address the problem of multiple taxation, poor infrastructure and the proposed increase in value added tax (VAT).
Managing director of NISPO Porcelain Company Limited, Mr. Afam Ukatu, stated this in his goodwill message at the inauguration of Commerce and Industry Correspondents Association of Nigeria (CICAN), in Lagos.
He called on government at all levels to engage the organised private sector (OPS) and chart the ways to eliminating multiple taxation, which is an endemic problem militating against businesses in the country.
The NISPO MD said, “If the government does not look into the issue of multiple taxation and harmonises it as quickly as possible, many more manufacturers would shut down.
“The situation has deteriorated to the extent that tax authorities shut down factories because of tax defaulters, but what I do ask them is that if you shut a factory because they are not paying tax, and all their workers are on the street, where are they going to get money to pay the tax? Again, I will advise that the government desist from the proposed increase of VAT”.
Ukatu reiterated the need to look into multiple taxation and VAT, arguing that taxes are being paid on turnover.
“But what of the situation where a manufacturer is losing money? It is obvious that a manufacturer produces and still loses money and still expected to pay taxes. There should be a system whereby you are evaluated by the tax authorities just like in China. It is a sad story that the country has a very huge gap that directly hampers business. It is obvious that the cost of transport from one end to the same Lagos has gone up more than what you paid as freight from China to Nigeria,” he said.