The Lagos Chamber of Commerce and Industry (LCCI) has cautioned the Federal Inland Revenue Service (FIRS) against freezing and debiting bank accounts of companies on grounds of tax defaults.
The LCCI Director-General, Muda Yusuf, urged FIRS and banks to exercise utmost restraint in adopting tax revenue recovery strategy based on its grave implications for investors, financial inclusion and the economy.
“The damage to the economy may be much more than the contemplated revenue. Revenue generation is not an end in itself, it is a means to an end.
“The ultimate objective is to ensure equity, improve welfare of citizens, create jobs and promote the advancement of the economy.
“The disruptions to businesses resulting from a sudden freezing of bank accounts for reasons of alleged default in tax payment has caused irreparable reputational damage to many businesses,” Yusuf said in a statement.
Meanwhile, the President of Abuja Chamber of Commerce and Industry (ACCI), Prince Adetokunbo Kayode, has called for urgent tax reforms to safeguard Small and Medium Enterprises (SMEs) from stifling demands for tax even before they made profit.
Prince Kayode made the call while speaking with newsmen in Abuja, stating that the practice of mandatory requirement for tax clearance from companies newly registered is a disincentive for the growth and thriving of SMEs in the country, and also one of the stumbling blocks in the Ease of Doing Business.
While noting the ongoing progress in national tax reforms, the ACCI chief advised tax authorities to immediately review the tax clearance system to reduce the burden placed on new and young companies sprouting up across the country.