The International Centre for Tax Research and Development has urged the Federal Inland Revenue Service against adding multipe taxes in Value Added Tax and increasing the tax burden on customers.
This was disclosed in a statement by the president of ICTRD, Morenike Babington-Ashaye.
She claimed that it would drive investors out of the manufacturing sector, reducing the number of imports into the country, and added that the current cost of making items in the country was higher than the cost of importing them.
Babington-Ashaye continued by saying that raising VAT was not the answer since it might result in layoffs of workers, which would raise the unemployment rate.
Morenike, who was formerly in charge of the Ogun State Internal Revenue Service, urged the FIRS to work with the Nigerian Market Traders Association to ensure taxpayer compliance.
She also advised them to keep an eye on their payments rather than requesting MTAN to apply VAT as it had already been added to the goods when they were purchased.
“Bringing VAT services to the market does not fit into the VAT system because they are traders and act as middlemen between the manufacturers and distributors.
“Retailers have no value to add because any product must have value added before VAT is charged; otherwise, such tax becomes sales tax, which would add to the consumers’ tax burden.”
The head of ICTRD stated that making sure that legislators were properly charged was the only real method internal revenue could earn money.
“Tax must be paid and companies must be closely monitored to ensure payment of correct taxes,” she said. “Whether it is stolen money or not, as long as it is in one’s possession and it is a public fund, the tax must be paid.”
The leading tax expert advised FIRS to investigate businesses that were utilized to covertly launder public funds.
