Yemisi Izuora
The Managing Director of NISPO Porcelain Company Limited, Mr. Afam Ukatu has raised fears that more Manufacturers might be in the process of shutting down if governments at all level fail to address the multiple taxation and proposed increase in Value Added Tax (VAT).
He disclosed this in his goodwill message at the inauguration ceremony of Commerce and Industry Correspondents Association of Nigeria (CICAN) held in Lagos on Tuesday.
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 paid tax, and all their worker 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 therefore reteirated the need to look into multiple taxation and VAT, argued 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”, he said.
“It is a sad story that the country has a very huge gap directly hampers business. It is obvious that the cost of local transport from one end to the same Lagos has gone up more than what you paid as freight from China to Nigeria”, he said.
In the area of ease of doing business, the MD said Nigeria is one of the difficult countries in the world to do business, saying the nation can grow its business if the working environment is conducive where all infrastructures are in place.
He said Chinese and Indian grow their businesses themselves as well as Agricultural sectors.
NISPO Porcelain Company Limited is into building construction materials.
Other guests at the programme include: Manufacturer Association of Nigeria (MAN), NACCIMA, FIIRO amongst others.
At the event, new CICAN executive were sworn -in to direct the affairs of the association.