The clamour for tax
amnesty by operators in the Medium Small and Micro Enterprises (MSMEs) sector
of the economy seems to have yielded favourable result as their
request has
been granted. The window for the amnesty application, which closed November 24,
2016, has also been extended to December 31, 2016.
The cheery
information was given recently by the Chairman of the Federal Inland Revenue
Service (FIRS), Dr. Babatunde Fowler, at the Deloitte/NASME Public Private
Dialogue (PPD) on Taxation for MSMEs held in Lagos.
Fowler, who noted
that the Federal Government gives priority of place to small scale businesses
owing to its belief in their importance to economic growth and development,
said the waiver for interest and penalty between 2013 and 2016 sought by MSMEs
would be granted if they apply for it through the proper channel. He also
stated that qualifying for the waiver would depend on the operator’s ability to
pay 25 per cent of outstanding taxes.
He informed the MSME
operator that government was “working on reducing the tax rate and I believe
that before the end of the year you will be advised on the new tax rate, which
will be effective from 2017, which will help your business.”
Also speaking, the
Minister of Finance, Mrs. Kemi Adeosun, who was represented by Hajia Larai
Shuaibu, stated that government was conscious of the role of the private sector
in driving the process of job creation, adding that it is out to encourage the
sector by ensuring, “a reduction in tax rates for smaller businesses.”
Adeosun said, “the
qualification for the lower income tax rate applicable to small business should
be reviewed in line with economic realities. The income tax rate for small
businesses should be further reduces as an incentive to encourage compliance
and promote MSMEs.”
Earlier in his
welcome address, the President/Chairman of Council of the National Association
of Small and Medium Enterprises (NASME), Degun Agboade, said the importance of
MSMEs in sustainable economic growth in developing economies cannot be
overemphasised considering the level of attention the sector is attracting
globally.
Agboade, who
commended Deloitte and other partner organisations for their support, therefore
noted “the need for a conducive operating environment for MSMEs, “urging that
the current stagnation confronting the sector owing to multiple taxation,
levies, fees, permits,” among others, “should not be overlooked.”
He explained that
the PPD was aimed at generating solutions that would aid government in
developing a healthy tax regime that meets its objectives of generating revenue
as well as “enabling economic growth through MSME success.”
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