Lagos Chambers of Commerce and Industry (LCCI)has called on the Federal Government to consider 50 percent reduction in all taxes currently being paid by companies in manufacturing sector for one year.
LCCI, in its 2020 Post COVID Agenda 2 to the Federal Government, also called for suspension of all forms of taxes for health sector investors (pharmaceutical companies and hospitals, Medical Laboratories etc.), agriculture and agro – processing, Aviation and Hospitality sectors for at least one year.
Dr. Muda Yusuf, Director-General, LCCI, cited examples of tax palliatives in other countries, as follows: “India – filing of General Sales Tax (like VAT) delayed for 3 months, UK – VAT payments delayed by 3 months; US – personal income taxes delayed by 3 months, Italy – suspended the tax system overall from March 12, no filings and no payments; South Korea – cut VAT for small businesses and Ghana – health workers exempted from taxes for 3 months.”
LCCI also advocated for the extension of filling of annual returns to Corporate Affairs Commission, including payment of due amounts to 30th June 2020; unconditional waiver of penalties and interests of all outstanding tax payments and temporary suspension of recently introduced 50% increase in VAT till year end.
“For Employees, PAYE should be suspended for a period of 6 months. This would put some money back in the hands of the employees during this period to strengthen the purchasing power of citizens and stimulate output within the economy. Health workers PAYE should be suspended for one year in recognition of their role as front liners in the battle against the Covid 19 pandemic,” said LCCI.