Wednesday, 18 September 2013

DAYLIGHT ROBBERY

This morning, I saw a column in Leadership newspaper written by Kunle Somorin. Part of the article read:  “Problem started when the company demanded clarification on certain issues, such as: How did AMAC and its so-called technical partners arrive at the N300, 000 fee? Why was the notice not duly signed by either AMAC or its partners, as signatory was unidentified? Why did AMAC/Micro Vision Ltd indicate the said amount with a pen by filling in a blank space if the amount was legitimate? According to the Local Government Laws 1986 (as amended in 1989 and 1991) referred to in the notice, local government only reserves the right to so tax shops, kiosks and other small businesses. How come a registered manufacturing company with over 200 staff is levied under this arrangement and referred to as a ‘shop’?” 

Being the principal of the concern in question, I cannot but thank the columnist for bringing this to public notice. I am yet to come to terms with the strong-arm tactics displayed by the state with the use of the police force to force a tax-paying, employment-generating company into coughing up the funds for a suspicious levy. I was personally threatened by the three heavily armed policemen who called me “a tax evader” and said that I should go to court if I had any problem.” Na wah oh! “Police is your friend”, they are here to serve and protect and, oh, are also available for hire! My taxpayer’s money!! Meanwhile, the plant is sealed because I refused to be intimidated. I did not pay, and I want to get to the bottom of the matter. 
In my last two commentaries on this platform, I emphasised the need for us as a country to do the right thing if we want others to treat us with respect. What I witnessed on Monday was akin to a mafia operation and a display of the strong arm tactics used in the protection racket. Not one but 3 armed policemen, when kidnappers are having a field day all over the country and innocent people are being killed in Nassarawa. I have mentioned before how increasingly difficult it is for Nigerian businessmen to do business abroad. What I did not mention is that it is even more difficult for Nigerians to do business in Nigeria. Government agencies are deliberately killing legitimate businesses, especially in manufacturing, with multiple taxation and no services, whilst dubious businessmen are flying in with briefcases and no investment and walking away with billions.

At Idu Industrial Area, there are no communication masts and the roads are in a poor state.  Transportation and communication are a nightmare to both the clients and industries located here. To function, diesel generators have to power operations, because there is no electricity in a so-called industrial park. Irrespective of this, we still struggle to ensure that something is at least produced in the FCT. We are employers of labour, pay tax and contribute to the economic development of the city and Nigeria in general. Yet, what we get are all sorts of frivolous and duplicated levies from “task forces” claiming to have the backing of various government agencies. As I write, a group is stationed at the entrance of the industrial estate extorting a new levy from lorries and other articulated vehicles, even though they have paid all the local levies. They claim to be a federal body and have a policeman to enforce the stop and demand.  

As an entrepreneur, I share the fear of that visitor to our factory. Revenue generation is crucial to local government viability and ability to dispense its constitutional role. But such drive should be within the ambience of the law and not at the arbitrary prerogative of any government official or department. They use the state’s might to perpetrate illegality in the guise of revenue generation. This is not the right signal to send to potential partners, both at home and abroad. Countries that genuinely want economic growth and development treat local investors and industries as stakeholders. They encourage them to grow their businesses further through various stimulus measures because it is when they grow that more employment can be generated and more families financially empowered.
I understand the importance of revenue generation. I am not so sure that some of these government agencies understand what the requirement of paying taxes for this purpose is. We are supposed to get something back! My investigations lead me to ascertain that there was no levy higher than N2,000 in the AMAC guidelines. Where did this fee come from and who is AMAC VISION MICRO LTD? The whole thing stinks. I beg the FCT Minister and the IG of Police to look into this matter and come to the aid of co-investors in the FCT.       

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