The Managing Partner of Highnet Resources, Ms Vivian
Ani, has charged government at all levels to focus more on job creation rather
than imposing multiple taxations on the people, as the former is the surest
means of increasing a nation’s revenue.
Ani declared this at the 6th Annual Lecture of the
January 9th Collective (J9C), themed: “The Tax Debate; For Young Businesses to
Grow, Established Firms to survive”, the event was held at the prestigious
Lagos Sheraton Hotel, Ikeja.
The business consultant, who said Small and
Medium-Sized Enterprises (SMEs) often find it difficult to cope with taxation,
explained that VAT increment from 5 to 7.5 per cent – a whopping 50 per cent
increase, is not good for SMEs.
Vivian posited that over 60% of Nigerian businesses are
within the informal sector, adding that overtaxing these businesses could lead
to their folding up.
A discussant, and founder of Proshare Group, Femi
Awoyemi, while answering questions bordering on why people sometimes evade tax
in Nigeria, said the government is not making tax-payment easy, and for that
reason, many would look for safe havens by evading it.
Awoyemi, who described Nigeria’s style of taxation as
‘Tax Collection’, instead of ‘Tax Administration’, said revenue collection
agencies in the Federal, State and Local Governments need to educate the people
more on taxation.
In his contribution, the Chairman, Lagos State Internal
Revenue Service (LIRS), Ayo Subair, who was represented by the Assistant
Director of LIRS, Igho Orienru, disclosed that ‘Fines, Penalties, Donations,
and License fees’ are not taxes, and should not be misunderstood for taxes.
Subair explained that the Lagos State Government is
working on different strategies, such as the introduction of Electronic-Tax
(e-Tax) so as to make tax-paying easy for taxpayers.
Speaking on this year’s theme, J9C’s Publicity
Secretary, Wale Ewedemi, explained that the issue of taxation as it relates to
businesses in Nigeria needs constant engagement.
Ewedemi added that while it is a given that government
needs to raise revenue through taxes in order to meet its obligations, there is
a need to have a cordial conversation on how to balance the two, which is what
the 2020 J9C Anniversary Lecture seeks to achieve.
Earlier in his keynote address, the Alara of Ilara
Kingdom, HRM Oba Folarin Ogunsanwo, said that SMEs are integral to Nigerian’s
economy, he, therefore, urged the Federal Government to provide tax incentives,
as well as a conducive environment for them to thrive.
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