Sustain Tax Holiday Policy, Labour Leader Urges Govt

• Sustain Tax Holiday Policy, Labour Leader Urges Govt

The Federal Government has been urged to sustain the tax holiday policy and ensure that its implementation is adequately monitored to forestall corrupt practices.

Speaking with the media, President, National Union of Chemical, Footwear (NUCFRLANMPE), Comrade Olatunji Babatunde, said if carefully guided, tax holiday would attract Foreign Direct Investments (FDI) and domestic investments, which would generate employment.

He said with tax holiday, the number of companies relocating to neighbouring countries and the closure of companies would be reduced.

“Companies will no longer relocate to neighbouring countries. There will be employment. Crime rate will be reduced because able-bodied people are gainfully employed.

“Volumes of trade will appreciate. Massive importation of consumer goods will reduce thereby pave the way for exportation or self-sufficiency and the government will derive more revenue,’’ Babatunde said.

He, however, said depletion of revenue base was not a sufficient reason to stop tax holiday as such holiday is futuristic in nature.

“The gains may not be a short term gains, but long term,’’ he said.

Meanwhile, in line with the tax incentive, the Federal Government announced in September that it would grant a 10-year tax incentive to Dangote Group after the company has agreed to rehabilitate the Apapa-Oworonshoki Expressway.

The government handed over the design of the 35km Apapa-Oshodi-Oworonshoki Expressway to Dangote Group in furtherance to steps by the government to rehabilitate the road.

The International Monetary Fund (IMF) recently urged the Federal Government to phase out tax holidays and exemptions as they erode Company Income Tax base.