Addressing Lagos businesses’ tax concerns

In partnership with office of the Special Adviser to the Lagos State governor on taxation and revenue, and the Ministry of Local Government and Chieftaincy Affairs, the GEMS3 programme is addressing issues of taxpayers’ complaints.

GEMS3, which stands for Growth and Employment in States in Nigeria, is a partnership between the Federal Government of Nigeria, the United Kingdom Department For International Development (DFID), and the World Bank.

In addressing these taxpayers’ complaints with primary focus on businesses, a workshop being held in phases has been organised by these stakeholders. The workshop is aimed at creating a unique forum for principal officers from the 57 local governments and local council development areas (LCDAs) in Lagos State to dialogue on tax complaints received under the Tax Complaints Unit (TCU) with the view of exploring mechanisms on how they can be amicably resolved to the benefit of the business community.

During the workshop, issues of complaints from the private sector on local government rates, tariffs, levies were deliberated upon and attempts at solutions were proffered. Case studies from real life experiences of businesses with local government officials were brought to the fore. Apart from taxes, which are exorbitant and which business operators have severally complained about local government officials extorting from them, sometimes as much 1,000 percent higher than what should be collected, parking space issues were also brought to the fore.

One of these case studies presented by a representative of the Nigeria Employers’ Consultative Association (NECA) portrayed a company that was being asked by the local government council situated next to it to pay for parking of cars within the premises of the company simply because the firm’s compound is not fenced and therefore the council began claiming parking rights control of it.

B. Sanuth, director of industry/team head, economics of the Lagos State government, also brought up issues of television and radio permits and insistence by local government councils that taxpayers do assessment before paying their taxes thereby delaying the taxpayer from making payment. These issues were deliberated upon, and a communiqué would be released very soon on how such issues could be addressed going forward.

Addressing the issue of tax complaints in the state has become very necessary as businesses are gradually moving to Ogun State and other neighbouring states to establish and operate from there. Though the number of relocating businesses is still insignificant due to millions of businesses still resident in Lagos and the fact that the state contributes about one-fifth of the country’s Gross Domestic Product (GDP), the internally generated revenues of neighbouring states are swelling as a result. To demonstrate his commitment to finding meaningful solution to the issue, Bola Shodipo, special adviser to the Lagos State government on taxation and revenue, stayed throughout the deliberation at this fruitful workshop which held weekend in Lagos for principal officers in the tax departments of local government councils.

Speaking at the end of the programme, Yemisi Joel-Osebor, Lagos State manager of GEMS3 programme, said if everything was streamlined and made clear, many taxpayers would pay their taxes promptly.

She said: “The programme has been organised so that policy makers can hear what the taxpayers are going through. The special adviser to the Lagos State government on taxation has promised that the communiqué to be released will be presented to the Lagos State government and all the local government chairmen. After that, there would still be another meeting with them so that they can clarify issues. We have another programme with them, in which a consultant is working with them to help them with all the tax complaints issues.”

On the use of Point of Sales (PoS) machines, which the GEMS3 programme has piloted, Joel-Osebor said: “We have piloted the use of PoS in making tax payments is Ejigbo Local Government, it is working and it is sustainable. We are looking at some other local government councils but not all of the local governments want to embrace it.”

OLUYINKA ALAWODE