LASG, MAN Discuss Tax

The Lagos State Government and the Manufacturers Association of Nigeria, MAN, Ikeja Branch have met to discuss the way forward on taxation.

The state government presented its mission programme to the manufacturing sector in the area of taxation, which it said is where the government got the money to finance infrastructure development in the state.

Special Adviser to the Governor on Taxation and Revenue, Mr. Bola Shodipo, stated that it was the goal of the government to create an enabling environment through appropriate fiscal measures such as tenement/ground rent of the past compared to the Land Use Charge of 0.125 percent rate.

According to him, it is also the duty of the government to collate all possible taxes, charges, fees and rates payable to Lagos State into one booklet to aid their planning, create a revenue dispute resolution centre and also eliminate possible leakages, illegal levies, touting, corruption, harassment and intimidation.

The special adviser also spoke on multiple taxation, saying there was nothing of such in the state, adding that multiple taxation is when two or more taxes were charged on the same subject in respect of same income, same transaction or activity by the same taxing authority.

“The 1999 Constitution as amended to date recognises division of taxing powers among the federal, state and local governments. For example, the Federal Government will tax an entity on profits made in a year; the entity will collect on behalf of the state tax on each employees and remit same to state.“The same company/entity will pay to the local government, television and radio permit if they have and also if they do not have private parking on certain designated roads, they will pay parking permit.

“Now, these are three different types of taxes charged on the same entity by three different taxing authorities. Some misconstrue this as multiple taxes,” he stated.

On the expectation from MAN, Shodipo said government expected them to comport themselves as business leaders in the state by collaborating with us to improve the operating environment and keep the environment friendly and safe.

“A situation where a manufacturing company keeps pumping waste chemical water into open drainage in the neigbourhood, thus putting the health of residents in jeopardy is not good. We should always jaw-jaw on matters. We should sit down to fashion out policies that will help the real sector to grow and thereby help the state to do more in renewing infrastructure and engender development,” he said.

The manufacturers raised issues bothering on extortion by some unscrupulous government agencies which were addressed by the special adviser.

The Chairman, MAN, Ikeja Branch, Rev. Isaac Ade-Agoye, called for a meeting between the manufacturers and the Lagos Internal Revenue Service, LIRS and with Governor Babatunde Fashola at a later date in the future.

—Kazeem Ugbodaga