Business Multiple Taxation Makes Nigerian Businesses fail- FIRS

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LequteMan

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Nigeria- Mr Koffi Abassi, the Head, Micro and Small Tax Payers Department of the Federal Inland Revenue Services (FIRS), on Thursday in Abuja at the 2013 National Revenue summit blamed the failure of some businesses in the country on multiple taxation.

He said that one of the factors contributing to multiple taxation was the contracting of private agents by some states to collect taxes on commission basis.

Abassi said that though it could be argued that the practice had resulted in improve debt recovery rate for some states, it however had a negative effect on the economy.

He said that one of the negative effects was the allegation of imposition of multiple charges on innocent businesses.

“When you use tax contractors you virtually have less control over their modus operandi.

“They are interested in using the means they feel expedient to get more commission even when the method applied is wrong.

“Because of all these, the National Economic Council (NEC) made up of the 36 governors and former heads of states among others recently resolved to abolish the use of tax contractors in the country.

“This is because of the perceived burden on citizens due to multiplicity of taxes imposed by these tax contractors,’’ he said.
 
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