“Again, I will advise Nigerian government to desist from the proposed increase of VAT by 50 percent. ”
Mr. Afam Ukatu, the Managing Director of NISPO Porcelain Company Limited, made the call during the inauguration ceremony of the Newly Elected Executives of Commerce and Industry Correspondents Association of Nigeria (CICAN).
The current leadership is headed by Mr. Charles Okonji of The Nation Newspaper, as Chairman.
Speaking at the event yesterday in Lagos, Mr. Ukatu warned that more manufacturing firms might shut down under the proposed new VAT regime and the existing multiple taxations.
The NISPO MD said, “if the government does not look into the issue of multiple taxations and harmonizes 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? He, therefore, reiterated the need to look into multiple taxation and VAT, stressing 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.