Mr Olatunji Babatunde, on Tuesday advised the Federal Government to sustain its tax holiday policy by ensuring that its implementation is adequately monitored to forestall corrupt practices.
The President, National Union of Chemical, Footwear, Leather and Non-Metallic Product Employees, NUCFRLANMPE, told newsmen in Lagos.
According to newsmen, the International Monetary Fund, IMF, urged the Federal Government to phase out tax holidays and exemptions eroding the Company Income Tax base.
Mr Amine Mati, IMF Senior Resident Representative and Mission Chief for Nigeria, Africa Department spoke in Lagos in October.
The union leader, said that if carefully implemented, the tax holiday would attract foreign direct investment and domestic investments which would invariably generate employment.
He said that with the tax holiday, the number of companies relocating to neighboring countries and closure of companies would be reduced.
“Companies will no longer relocate to neighboring companies. 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 paving way for exportation or self-sufficiency and the government will derive more revenue,’’ Babatunde said.
He however said that the depletion of revenue base was not sufficient reason to stop tax holiday as tax holiday was futuristic in nature.
“The gains may not be a short term gain but long term,’’ he said.
The Federal government announced in September that it would grant a 10-year tax incentive to the Dangote Group after the company agreed to rehabilitate the Apapa-Oworonshoki Expressway, Agency news stated.
Government handed over the design of the 35km stretch Apapa-Oshodi-Oworonshoki Expressway to Dangote Group in furtherance of steps by the government to rehabilitate the road.