Private sector wants direction over VAT payment

The Organised Private Sector of Nigeria (OPSN) has called on the Federal Government to urgently make a pronouncement on the on-going controversy over the Value Added Tax (VAT) to enable businesses have a direction.
The Chairman, OPSN, Mr Taiwo Adeniyi, made the call at a news conference on Sunday in Lagos.
Adeniyi said that any delay in addressing the issue could fester negative effect on businesses, most especially in the collection and remittance of VAT to relevant authority.
“We are aware that by Sept. 21 we get penalised if we do not pay or remit the VAT for the month of August.
“We are also aware that laws are not made in retrospect, which then means that even if those laws have been enacted, particularly, the Lagos State law which came into effect in September will not affect the payment for businesses in the state.
“However, due to our remittances, we have issues with the fact that the law for Rivers was made in August and majority of the businesses in Lagos usually will have relationship with the Rivers State Inland Revenue too.
“Now, that confusion in the public space is the reason we are calling on the government to come to our aid and we want to pay.
“It is for the government at the centre to make a pronouncement as to what becomes of us,” he said.
Adeniyi, who is also the President, Nigeria Employers’ Consultative Association (NECA) said that the ongoing challenge had the potential to make businesses pay double-VAT in view of the demands of the FIRS and state governments for remittance of VAT.
He said that businesses as the collecting agents, were practically unclear on authority to remit to and without a clear path, this would further aggravate the pain on businesses.
“It is a popular saying that where two elephants fight, it is the grass that suffers.
“It is no longer news that Nigerian businesses have been battling with myriads of challenges, making survival of enterprises and ease of doing business in the country among the worst in this part of the world.
“Adding this current issue to accumulated issues facing Nigerian businesses would make survival of enterprises even tougher, ” he said.
The has been controversy over the collection of VAT after a Federal High Court ruled that it was not the duty of the Federal Government to collect it.
Also, the tax has been collected by the government since the military era, although the money is shared by the three tiers of government.
However, following the court ruling, Lagos and Rivers states passed laws that allowed them to collect VAT in their states.
The Federal Inland Revenue Services (FIRS), which used to collect the VAT on behalf of the Federal Government, has, however, challenged the court ruling at the appellate court.
OPSN comprises Manufacturers Association of Nigeria, Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, NECA, Nigeria Association of Small Scale Industries and Nigeria Association of Small and Medium Enterprises.