NNEW/GEMS3 forum clarifies tax payment issues
With 42 percent of women in Nigeria being entrepreneurs according to a report by the Bill and Melinda Gates Foundation, ensuring the success of these women-owned ventures is critical for the full development of this nation.
Many of these women entrepreneurs in the formal and informal sector of the economy have expressed willingness to pay taxes but they want to be assured that the money would be going to the right quarters and that the taxes are fair and would be documented appropriately. They also want to be assured of some level of support for the successes of their businesses by the government they are expected to pay taxes, levies or fees to. But the issues of taxes, levies and fees payment are still shrouded in mystery for many of these entrepreneurs.
To address that and to ease tax payment issues for enterprises particularly women-owned businesses, the NECA Network of Entrepreneurial Women (NNEW) and Growth and Employment in States organised a one-day workshop recently at the NECA House in Alausa, Lagos. Speakers were drawn from various revenue collection agencies covering the federal, state and local governments.
Lola Okanlawon, president, NNEW spoke on how businesses have to pay so multiple taxes. “They are taxing us out of existence. We need a special desk that women can go to. The tax officials need to come on the side of the women so they would be able to pay taxes. We need a gender desk at LIRS and FIRS.”
With the setting up of a Microfinance Bank by NNEW, the network now reaches out to women entrepreneurs in every strata of society even the lower strata. Okanlawon therefore pointed out that these women entrepreneurs would pay taxes if they do not get cheated or encounter so much stress making tax payments.
Also speaking at the forum, Adejumobi Fashola, Intervention Manager for Growth and Employment in States (GEMS) stated some of GEMS3 initiatives at entrenching transparency in tax payment. These include the encouragement of introduction of Point of Sale (PoS machines) by tax collection agencies so that the tax payer can get a receipt after tax payment has been made electronically.
He said there is also sensitisation being carried out on where and how people are to pay taxes. Speaking further, he said, “We urge the councils to do test service because if your money is being used appropriately, you will do more. Complaint is something that should be taken seriously. The revenue collector is the one that interfaces with all of you, we give them capacity building to reduce harassments and issues of arbitrary receipts, we teach them customer relationship skills, so that they would not close people’s enterprises for no just reason. Our partnership with NECA is because we believe in women economic empowerment.”
NNEW, established in 2005 under the aegis of the Nigeria Employers’ Consultative Association (NECA) seeks to build generations of successful women entrepreneurs. GEMS3 is funded by the United Kingdom Department for International Development (DFID) and the World Bank. It supports the business environment in Nigeria through improved land, tax and investment reforms
Modupe Oyekunle, an executive of NNEW explained that NNEW provides a platform for women entrepreneurs to consult and dialogue among themselves on issues of business interest. “NNEW provides opportunity for women to share information,” she stated. Adding that it was the reason the tax forum was being organised in partnership with GEMS3. Edobong Akpabio, publicity secretary, NNEW said the network consists of over 700 women cut across, Lagos, Abuja and Port Harcourt. “NNEW is the leading women network in Lagos, Port Harcourt and Abuja,” she stated.
The representatives of the tax collection agencies explained various levels of governments collect different taxes. The Federal Government collects the Company Income Tax and Value Added Tax and Withholding Tax. The state government collects Personal Income Tax of workers resident in the state while the local government collects fees and levies. Signage fees are collected by the Lagos state government on behalf of its local governments.
Bicci Alli, deputy director, New Growth Area, Personal Income Tax, Lagos Internal Revenue Service (LIRS) explained why payment of taxes to government was important. “When you pay your taxes, government will have money to executive projects and pay people working on the project and that gives opportunity for people to be empowered to patronise the goods and services of businesses,” he stated. He then delved into various taxes payable by people such as the Personal Income Tax and how business owners are to ensure all their staff even if it is just one pays taxes.
M.A Salami, deputy director Federal Inland Revenue Service (FIRS), spoke extensively on Company Income Taxes, Value Added Taxes and Withholding Taxes. He stated that every business is expected to charge its customers VAT except the goods or service is not ‘VATABLE’
Wale Musa, director of finance and admin, ministry of economic planning and budget, Lagos state, and Tola Faleye, deputy director, Lagos state ministry of chieftaincy affairs, x-rayed issues of levies and fees collected by local governments. They stressed the fact that tax payers do have the right to channel their complaints or issues of concern to the appropriate quarters and not relent until their complaints are addressed.
OLUYINKA ALAWODE