Africa’s richest businessman and Chairman of Dangote Group of
Companies Worldwide, Aliko Dangote, says tax holidays are great sources
of revenue that entice companies to invest and have the freedom to
expand.
Companies Worldwide, Aliko Dangote, says tax holidays are great sources
of revenue that entice companies to invest and have the freedom to
expand.
With tax holidays, he said companies had the room to reinvest what
they would have paid as taxes to the government in order to grow, expand
and later pay higher and more taxes to the government, offer greater
opportunities and help grow the economy.
they would have paid as taxes to the government in order to grow, expand
and later pay higher and more taxes to the government, offer greater
opportunities and help grow the economy.
Dangote said this at the 2018 African Transformation Forum organised
by the African Centre for Economic Transformation (ACET) in Accra.
by the African Centre for Economic Transformation (ACET) in Accra.
Other speakers at the forum were Ghana’s President, Nana Addo Dankwa
Akufo-Addo, and his Rwandan counterpart, Paul Kagame, who is also the
Chairman of the African Union; the Vice President of Cote d’Ivoire,
Daniel Kablan Duncan, and the Executive Vice President of Unilever
Ghana-Nigeria, Yaw Nsarko.
Akufo-Addo, and his Rwandan counterpart, Paul Kagame, who is also the
Chairman of the African Union; the Vice President of Cote d’Ivoire,
Daniel Kablan Duncan, and the Executive Vice President of Unilever
Ghana-Nigeria, Yaw Nsarko.
He added that after benefitting from tax reliefs, the total amount the companies paid after the period was huge.
Dangote cautioned that it was when tax rates were too high that
people looked for avenues to evade tax, adding that “the less you
charge, the more you can widen the net and collect a lot of taxes from a
lot of people.”
people looked for avenues to evade tax, adding that “the less you
charge, the more you can widen the net and collect a lot of taxes from a
lot of people.”
He gave an example of the taxes he had paid to the Nigeria government
after the expiration of tax breaks for his companies, citing his sugar
factory, whose tax holidays expired in 2006 and between 2007 and 2017
paid a quarter of a trillion naira (about $2694.44 million) in taxes.
after the expiration of tax breaks for his companies, citing his sugar
factory, whose tax holidays expired in 2006 and between 2007 and 2017
paid a quarter of a trillion naira (about $2694.44 million) in taxes.
Dangote said last year alone, group Dangote paid N100 billion (about
$277.78 million) in taxes, adding that while his companies grew and
expanded, it benefitted the people.
$277.78 million) in taxes, adding that while his companies grew and
expanded, it benefitted the people.
He said tax holidays gave his companies a lot of room to accumulate
cash to reinvest and added that three of his food processing companies
would be paying N2 trillion or $5.54 billion as taxes in the next five
years.
cash to reinvest and added that three of his food processing companies
would be paying N2 trillion or $5.54 billion as taxes in the next five
years.
Dangote stated that one of the major pointers he looked for before
investing in any country was the quality of leadership, especially if
the leader was a man of his words.
investing in any country was the quality of leadership, especially if
the leader was a man of his words.
He said if he considered establishing a business in Ghana, he would
first pick the speech of the President and check if he had been able to
execute quite a lot of the things he promised to do, especially his
promise to turn around the economy and bring down interest rates.
first pick the speech of the President and check if he had been able to
execute quite a lot of the things he promised to do, especially his
promise to turn around the economy and bring down interest rates.
