The Special Adviser to the Lagos State Governor on Taxation and Revenue, Mr Ade Ipaye, Tuesday, challenged claims by the report on multiple taxation presented by Michael Ogundele & Co, a consultant to Manufacturers Association of Nigeria (MAN) and Center for International Private Enterprise (CIPE), noting that the report is not based on the right parameters.
Commenting on MAN policy paper, tagged “Fostering Private Sector participation in Policy Making Through Taxation Reform” at MAN house, Ipaye said if the case study of multiple taxation report is an overall report of doing business in Nigeria, then it is understandable, but if it is based on taxation, then the report should be properly rechecked.
“The main thrust of the policy is to significantly improve quality of life in Lagos State by maximizing revenue potentials of the state economy without imposing an excessive burden on taxpayers. In order to achieve this, our activities are guided by certain policy objectives which is to create efficient, objective and people-friendly structures for tax and revenue administration at all levels and in all department of government, to eliminate from the tax system all incidence of illegal levies, touting, corruption, intimidation, and other exploitative practices, to achieve fairness and equity by ensuring that all chargeable persons are brought into tax net” he stated.
In a case study of multiple taxation in Nigeria conducted by MAN in collaboration with CIPE, Ipaye said the growth of the Nigerian economy has, over the years, remained stunted as a result of many factors, one of which is the challenge faced by businesses through un-coordinated tax administration leading to what is referred to, in common parlance, as multiple taxation.
“Currently, most businesses in Nigeria consider the tax environment as unfriendly and a disincentive to businesses. It endangers loss of man-hours to both the government and businesses and increases the cost of doing business in Nigeria; some businesses including manufacturing companies in Nigeria have shut down production and in some cases, have relocated their factories to other West Africa countries which were considered to be more investment friendly,” Ipaye stated.