By IJENDU IHEAKA

The Nigerian Revenue Service (NRS) has warned 318 tax-defaulting companies in Abia of severe consequences, while counseling other firms to avoid infringing the law as it carries strict punishments.

Mr Nicholas Okolo, the Tax Controller of the NRS Emerging Tax Office in Aba, gave the warning on Friday during a seminar on tax reforms organised by the Abia Shippers Association.

Okolo stated that the punishments for law infringement ranged from fines and placing a lien on the bank accounts of defaulting businesses to imprisonment and the forfeiture of business premises.

He, therefore, urged the shippers to be careful, advising them to register with the tax office, obtain Tax Identification Numbers (TIN), file returns on time, and pay their due taxes to avoid penalties.

Mr Olo Onuma, Chairman of the Board of Trustees for the Abia Shippers Association, explained that the seminar focused on the Nigerian Tax Policy Reforms and their impact on Abia shippers.

The event aimed to expose members to the demands of the reforms to help them avoid potential dangers, he said.

“Before this time, we have never had any reason whatsoever to worry but because of this new tax law, Abia Shippers Association thought it wise to hold this seminar so that members and the public would know the implications of these new laws.

“It is not enough to say you registered your company but you don’t know what to do; if you listened to these lectures, you will see that they are eye-opening.

“So, whoever has participated in this seminar would go home prepared to run his company to reflect the knowledge that he or she has garnered from here,” he said.

Onuma, who noted he began foreign trade in 1980, said the association had positively influenced changes in unfavorable government policies in the past and would do so regarding this tax law if the need arose.

On concerns over rising costs and inflation, Sir Emenike Ubani, the association’s Assistant General Secretary, noted that rumours regarding the new tax law and muddled-up ideas about its implementation prompted the seminar.

“We are not comfortable with the new tax regime because Nigerians are paying through their noses and we are not seeing any result.

“The Federal Government is not doing anything with this taxes they are levying us.

“They removed fuel subsidy, it changed nothing, they have also added tax for us and that is changing nothing.

“So, that is why we decided to expand our plan on how to thread softly with the law,” he said.

Ubani stated that the association would make propositions to the Federal Government through its national president, to reach an understanding on the new tax regime.

He added that the new law had driven up the cost of everything, noting that skyrocketing inflation and the high cost of goods and services would negatively affect businesses.

Mr Emmanuel Ubadire, the Acting President of the association, told NAN that the seminar was meant to educate members on the reforms, enabling them to manage their finances, businesses, and taxes effectively.

Referencing joint business endeavours, Ubadire explained that the new law restricted their operating space.

He noted that it could inflict financial losses on an ignorant trader who compassionately purchased goods from another trader and only sent money for the commodities but excluded the tax.

“The new tax policy reform is not yet clear to us. When one is receiving money from any customer, let them be aware of the new policy.

“We will not dictate to the government on how to tax Nigerians but we are pleading that whatever decision they are making should assist us in progressing further,” he said.

Dr Lucky Ainabor, a Lecturer in Ports Management Planning and Ship Chartering Practice at the Ogbonnaya Onu Polytechnic, Aba, remarked that the lectures were intended to impact how shippers related to government policies.

However, he expressed regret that the topics were given a general outlook rather than being tailored specifically to the practical needs of the shippers.

He advised that future lectures should focus directly on the policy implementation demands of the tax reform act rather than general tax issues. (NAN)