…FIRS and Lagos move to review tax burden

By Emeka Anaeto

The Nigerian Association of Small and Medium Enterprises (NASME), umbrella body of micro, small and medium enterprises, MSMEs, in Nigeria, may have won a major battle releasing small businesses from tax burdens as the Federal Inland Revenue Service (FIRS) has waved all outstanding tax liabilities against them up till 2016.

NASME had, earlier in this year, packaged a tax amnesty proposal with the technical support of a leading accounting firm, Akintola Williams Deloitte, and lobbied the Federal Ministry of Finance to, among other things, wave all outstanding penalties, charges and interests on all unpaid taxes standing against every MSME up to 2016.

Last September, FIRS announced a waiver for all outstanding penalties, interests and charges for tax defaults against MSMEs for a period from 2013 to 2015.

Speaking to Vanguard SME, the National Vice Chairman of NASME in South West zone, Mr Jemi Alade, while commending the initiative disagreed with the period covered, arguing that it should cover all previous years.

•SME operator at work

He stated: ‘‘We want it across board. Instead, deadlines or cut-off dates should be eliminated totally up to end 2016’’.

At a workshop for tax and regulatory policy framework for MSMEs held in Lagos last week, Chairman of FIRS, Dr. Tunde Fowler, indicated that the waivers would be extended to all years prior to 2016. Previously, the waiver was from 2013 to 2015.

Moreover, Fowler said the extension, applies to members of NASME only. Moreover, He also stated that management accounts, instead of audited accounts, will be accepted.

Additionally, the FIRS boss directed that companies should refer controversial taxes by states to the Joint Tax Board (JTB).

Vanguard learnt that Ministry of Finance is working for the revised tax policy to be sent to the National Assembly before year end. The review will also be a continuous exercise. Government is also working on reducing company tax rates which will be effective when the law is passed.

There were also indications that Lagos State Internal Revenue Service (LIRS) would be creating a similar tax waiver scheme for NASME members in the state.

A representative of the Lagos state ministry of commerce and industry said that the government is reviewing the local government law of 2010 to itemize the taxes with community business assemblies inaugurated at the local government level, for businesses to channel complaints regarding levies and fees payable to local governments.