Stakeholders seek tax expansion at IIADRI symposium

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At the year’s Annual Symposium of Issuers and Investors Alternative Dispute Resolution Initiative (IIADRI), stakeholders have unanimously called on the current administration under the leadership of President Bola Tinubu to emphasise on tax expansion rather than tax increment.

The Chairman of IIADI, Sebastian Udoh, in his welcome address at the symposium, noted that in order to protect Nigerian companies to survive the likelihood of adverse effects of taxation that may become imminent as a result of global and national economic challenges, tax increments should not be considered at all.

He said to achieve the goal of the Initiative which is to gender strong companies that will continually render returns on investments to all stakeholders as well as enhance the growth and development of the country, the theme of the symposium “Nigerian Tax Laws: Matters Arising” is apt.

It is also to sensitise the government to emphasise expanding the tax-base rather than increasing the tax rate, which will have a detrimental impact on the companies’ operations and to also prepare Nigerian companies for profitability during this recessed.

President, Lagos Chamber of Commerce & Industry (LCCI), Dr Michael Olawale-Cole, in his remarks said there’s the need to sensitize the government to emphasise expanding the tax-base rather than increasing the tax rate, which will have a detrimental impact on the companies’ operations and to also prepare Nigerian companies for profitability during depressed or recessed time.

In his keynote address, the President of Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye noted that though a sound fiscal measure is expected to strike a balance between revenue generation and enhancing local industrial production, it is unfortunate that the manufacturing sector is operating in an environment characterized by these challenging circumstances of a high tax burden amid depressed economic activities.

He said the manufacturing sector, which ought to be a crucial lever of cconomic growth and employment in the country is heavily constrained by a burden of multiple taxes that is worsening its profitability and competitiveness.

He emphasized that taxes not only hold immense importance for the government but also significantly affect the operations of the manufacturing sector, especially now that most of industries are operating in a harsh and depressed environment, while noting that the Manufacturers Association of Nigeria (MAN) has, over the years, lamented the burden of multiple taxes, fees, and levies imposed by all tiers of government on its members

He therefore called for the reverse of the 2023 fiscal policy measure that introduced green taxes and raises excise duty on beverages and tobacco without adequate engagement with manufacturers.

He also noted that for a vibrant economy, the present government need to address the issue of multiple taxes imposed on the manufacturing sector.

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