Chinedum Treasure
The Manufacturers Association of Nigeria (MAN) has expressed its preparedness to partner with Local Governments to educate its members on their lawful obligations, encourage voluntary compliance and support initiatives towards improved transparency and ease of doing business.
Chairman, MAN Anambra, Enugu & Ebonyi States Branch, Dr. (Lady) Ada
Chukwudozie made the pledge on Tuesday during a stakeholders’ engagement with Local Government Authorities on Multiple Taxation, Local Government Levies and Ease of Doing Business in Anambra State.
She said the partnership has become necessary following increasing complaints from her members over persistent harassment by individuals claiming to be agents of Local Governments.
According to Chukwudozie, the engagement was not as a result manufacturers’ unwillingness to pay taxes, nor attempt to negotiate against government revenue, but to finding lasting solutions to the menace.
She said, “Manufacturers fully appreciate that taxes remain one of the major sources of revenue required for government to provide infrastructure, security, healthcare, education and other essential public services.
“Our members have always been responsible taxpayers. However, over the past several months, MAN has received increasing complaints from our members regarding persistent harassment by individuals claiming to be agents of Local Governments.
“Factories are visited regularly by persons demanding various taxes, levies and fees. Some present official-looking demand notices.
“Some insist on immediate payment. Others threaten to seal business premises. In many cases, our members are left confused with many questions including if tax is legally payable or if levies are Local or state government responsibility.
“Unfortunately, there are often no immediate answers. This uncertainty has created avoidable tension between manufacturers and Local Government authorities.
“More importantly, it has created opportunities for unauthorised persons and touts to exploit the communication gap that exists between government and businesses. That communication gap is precisely why we are here today.”
The MAN boss proposed three practical outcomes as part of solutions to the challenge namely, developing a comprehensive and officially recognised schedule of all LG taxes, levies and fees applicable to manufacturers in the State, together with enabling laws and approved rates.
“Secondly, identifying areas where State and Local Government taxes overlap and work together towards harmonisation, so that businesses are not subjected to multiple demands for the same or similar obligations.
“Thirdly, establishment of a formal liaison mechanism between MAN, the Office of Commissioner and the Local Governments to provide regular platform for communication, consultation and prompt resolution of disputes before they escalate,” she noted.
Describing the meeting as opportunity to build trust and create transparent, predictable, fair tax administration system supportive of investment, Chukwudozie expressed optimism of improved compliance.
“When businesses clearly understand what they are expected to pay, who is legally entitled to collect it and how it should be paid, compliance will improve naturally.
“Likewise, when government engages directly with the organised private sector, it strengthens confidence, attracts investment and promotes sustainable economic growth,” she added.
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