Lagos, OPS dialogue over sales tax in deadlock
By Babatola Adeyemi, Lagos
HOPES of an out-of-court settlement of the lingering controversy over the sales tax introduced by the Lagos State government were dashed yesterday, as the meeting with the Organised Private Sector (OPS) to resolve the imbroglio ended in a deadlock.
A law on sales tax was recently enacted by Governor Bola Ahmed Tinubu's administration on goods sold in the state, a move which was opposed by the Manufacturers Association of Nigeria (MAN).
The manufacturers see the policy as double taxation since its members are already paying Value Added Tax (VAT).
MAN argued that if the tax must be paid, it should be directed to distributors who sell directly to consumers.
The matter eventually resulted in litigation when MAN ordered its members not to pay the controversial levy, as against the government insistence on payment.
The Guardian learnt that at the meeting, which was presided over by the Lagos State Deputy Governor, Femi Pedro, both parties merely restated their previous positions on the issue, with the state government seeking the co-operation of the organised private sector.
However, MAN's President, Mr. Charles Ugwuh at the meeting restated members' opposition to the policy.
After efforts by Pedro to justify the levy, both parties resolved that it was desirable to have more dialogue on the issue at a later date.
In an exclusive interview with The Guardian on the talks, which was also attended by representatives of the Lagos Chamber of Commerce, Industries, Mines and Agriculture (LACCIMA) and other OPS members, MAN's Director General, Mr. Olawale Akinpelu, described the meeting as "useful."
He admitted, however, that there was no "concrete achievement" on the matter, adding: "We remain where we were before the meeting."
He continued: "We went there to listen to what the Lagos State government had to offer. And, indeed, they made a good representation to which we responded. We understand the problems of Lagos State, such as the teeming population and its implications on infrastructure etc. But we also have our constraints."
Akinpelu remarked nonetheless that the good aspect of the meeting was government's preparedness to have more dialogue on the matter.
Meanwhile, the court action will go on, since an out-of-court settlement was not an option considered by the meeting, Akinpelu stated further.
Governor Tinubu had reopened the sales tax controversy during a recent visit to him by the Managing Director of Nigerian Breweries PLC, Mr. Festus Odimegwu when he gave the business operators in the state a two-week ultimatum to pay the tax or have their premises shut.
