Our Dear participants,
The Board of Directors and Management of FATE Foundation bring you warm greetings.
We would like to thank you again for your participation at the last Annual FATE Policy Dialogue Series on Entrepreneurship and for your interest in FATE’s MSME Policy Advocacy activities.
Over the last 5 months since the dialogue, FATE has worked to commence its MSME Policy Advocacy process which is currently focused on Micro, Small and Medium Enterprises (MSME) Tax Policy Advocacy. Information distilled from the discussions at the last Policy Dialogue revealed a myriad of challenges impacting on MSMEs in Nigeria; major ones being Taxation policies and Taxation compliance issues. Following the outcomes of the dialogue we collated recommendations discussed, which today serve as the basis for our MSME Tax Policy Advocacy activities.
As 2016 opened to tales of the consequences of the dipping economic situation in Nigeria,Government began looking to taxation as a source of revenue and this raised concerns amongst business owners. To allay fears and provide information on taxation and tax compliance, we organised a session on “Tax Compliance Requirements for MSMEs in 2016” which had Mrs. Adetola Aibangbee, Associate Director, Tax, Regulatory & People Services, KPMG and Mr. Adebayo Ayodele, Director, New Growth Areas, Lagos Inland Revenue Service (LIRS) as speakers. They divulged information on taxes and compliance requirements for business owners. You can read excerpts here and also watch video clips of the event.
The tax session showed challenges with the tax policies and tax system in Nigeria which prompted us to identify and align with other MSME-support organizations such as the Enhancing Nigerian Advocacy for a Better Business Environment (ENABLE) group, the Nigerian Economic Summit Group (NESG), the Nigerian Association of Small and Medium Enterprises (NASME), Chartered Institute of Taxation in Nigeria (CITN) and a host of other MSME Stakeholders to form the “Coalition of MSME Stakeholders Forum on Tax and Regulatory Framework” with the primary focus of working to advocate for MSME Tax policies review and implementation. Together, we are working to achieve the following amongst others:
- Overhaul of the MSME Tax Framework in Nigeria
- Tax amnesty for defaulters to keep MSMEs within the formal sector and attract more from the informal sector
- Introduction of 3 – 5 years tax holidays for start-ups
- Constitutional support for the implementation of supportive MSME Taxation policies in Nigeria
- Introduction of a one-stop information portal that provides thorough information on taxation processes and calculations in Nigeria
- Introduction of specific tax laws that protects small businesses
- Downward review of Company Income Tax(CIT) from 30% to 10%
- Elimination of multi-taxation and a strengthening of the Joint Tax Board
As we advocate for favorable tax policies, we are also collaborating with the Manufacturers Association of Nigeria (MAN) and ENABLE to ensure that the Procurement Act is amended and that Government patronizes local businesses in Nigeria, thereby setting the way for others to follow in the Buy made-in-Nigeria campaign.
As MSME stakeholders actively involved in the Nigerian MSME space, we realize that you may have suggestions and recommendations; we are open to reading from you and will keep you updated as progress is made.
As always, we trust that we can count on you and thank you for your continued support.
Accept our best regards,