The Manufacturers Association of Nigeria has decried the rate of double taxation in Lagos State which affects efficient service delivery of manufacturing operations in the state.
This was disclosed by Chief John Aluya, Vice President, Manufacturers Association of Nigeria (MAN), Lagos Zone Aluya during the 7th Lagos Corporate Assembly tagged: ”Babajide Olusola Sanwo-Olu (BOS) Meets Business”, organised by the Lagos State Ministry of Commerce, Industry and Cooperatives, according to NAN.
He warned that the multiple taxes creates a bad business ecosystem, adding that the extant law of the land-use charge confirmed a consolidation of all land-based laws and charges, but most member companies and even the association were being made to pay both land use charge and ground rent.
”This is double taxation. We urge your administration to try as much as possible to eliminate double taxation.
”Today, the central sewage has not been built by the government, but we are being made to individually construct our effluent treatment plants and still pay the treatment charges to the state government without any value derived from the payment,” Aluya said.
MAN urged the state government to implement policies that affect drop in productivity, citing a sharp decline in capacity utilisation to 49% from 68.5% in the corresponding half of 2019.
“The capacity utilisation for both Ikeja and Apapa Industrial zones in the second half of 2020 stood at 59 per cent and 64.2 per cent, respectively, a decline from 70.8 per cent and 69.1 per cent recorded for the second half of 2019, respectively.
”The impoundment of trucks by the Lagos State committee on abandoned vehicles is highly disturbing.
”Trucks parked in front of the manufacturing facilities awaiting offloading their imported raw materials are being impounded as early as 6a.m. and the companies are being subjected to pay fines for offenses they do not understand,” Aluya said.
What you should know
On multiple taxation, Nairametrics reported last week that a recent report revealed that up to 98% of Nigerians operating in the informal economy pay taxes daily, with some businesses paying taxes 3 times a day. In Lagos, for instance, some bus drivers pay as much as N3,000 a day in taxes to different groups.
The report by socioeconomic research firm, SBM Intel, titled “Under the Hood: A look into Nigeria’s informal sector,” states that the informal sector plays a crucial role in many economies and accounts for 60% of the global workforce.