FESTAC business owners lament exploitation, harassment as FIRS slams N40m-N42m tax on small businesses

Business owners in FESTAC Town, Amuwo Odofin, Local Government Area of Lagos State have lamented over what they called the harassment, intimidation and exploitation by the Federal Inland Revenue Service (FIRS).

In a protest letter titled, ‘RE: Company Income Tax/Value Added Tax Monitoring Exercise (January 2017 – December 2020)’, addressed to the FESTAC Micro & Small Tax Office, the business owner lamented that they were been given bills as high as N40million for the three years and been mandated to pay within a week or they would have their business premises sealed or even face litigation.

Speaking while reacting to the originating letters sent to them by the FESTAC Tax Office, the spokesman of business owners association in Festac, Kunle Adigun, said that as law abiding citizens, they are not averse to paying tax, since it is part of their civic responsibilities.

However, he said that their argument is that the tax is outrageous and again that right now they are not doing much with regard to business.

He also said that the bills being sent to them is suspicious, wondering how a micro and small tax office should be sending more than N40million bill to people to pay.

According to him, it is basically the uncouth manner that the tax collectors come to their members, with threats, harassment and intimidation that is causing the problem.

“Okay, see what the last paragraph of their letter said, ‘As a result of the forgoing, you have only seven days from receipt of this letter to defray the established liability of N42million and file all outstanding audited accounts failing, which this case will be referred for litigation.

“Have you seen the tone of the letter? They are not businessmen, so they don’t understand the pains that we are going through. Since the outbreak of COVID-19 till date, our businesses have been struggling. Even some of us who are talents are finding it difficult to pay our rents, some of us are finding it difficult to pay our children’s school fees and instead of sympathizing with us, they are coming to harass, intimidate and exploit us.

“I want to repeat what I said during our last press conference that what we need at this point in time is tax holiday to help us recover from the consequences of the pandemic and not harassment, intimidation and sealing up of their business premises,” Mr. Adigun stated.

He also appealed to both Lagos and federal governments to come to their aid.