How Lagos loses tax of N1bn yearly from water producers  

Stakeholders say Lagos State government loses about N1 billion annually from disjointed tax collection system and corruption among tax collectors meant to collect taxes and levies from over 2,500 table water producers operating in the state.

Against this background, the stakeholders have agreed to work with the state government to harmonise tax collection and eliminate illegal practices that stand in the way of ease of doing business in the commercial city.

The stakeholders, including tax consultants, small business owners, officials of the government, at a forum, Tuesday, organised by the state ministry of finance, expressed concern over multiplicity of taxes, rates, illegal levies, harassment of citizens by revenue officers, especially those from the local governments, saying it would be to the mutual interest of all to harmonise the system as businesses were leaving Lagos for neighbouring states.

Akinyemi Ashade, the state commissioner for finance, speaking at the forum said the government was concerned about public complaints on issues bothering on multiple taxation.

“We are here today to deliberate, resolve and fashion out a way of harmonising the collection of taxes, levies and fees by all revenue generation agencies of government in the state and local government areas saddled with the responsibility of tax collections and generation,” he said.

Ashade said the meeting provided an opportunity to address areas of conflict, streamline revenue collection in the state between the state and the local governments and set up a proper channel of collection and billings.

“The state government is passionate about providing an enabling environment for business growth of the people and therefore must ensure decorum on the way government officials carry out their duties.

“Revenue collection should not be at the detriment of the people and the era of harassment of people by revenue officials, particularly in local government areas will be put to an end,” he said.

Clementini Ativie, president of Association of Table Water Producers said the state was losing over N1billion to unregulated tax system.  Ativie said the association has about 2,500 members, adding that the challenges of multiple taxation remains a major concern and forcing members to move out of Lagos to Ogun and Oyo States.

 

JOSHUA BASSSEY