The Organised Private Sector of Nigeria has said fulfilling of tax obligations, especially remitting Value Added Tax, has become confusing as businesses did not know the actual authority to relate with.

A statement from the association disclosed that OPSN chairman, Mr Taiwo Adeniyi, said this while addressing a forum on Friday.

The Organised Private Sector of Nigeria comprises of Manufacturers Association of Nigeria, Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, Nigeria Employers Consultative Association, Nigeria Association of Small Scale Industries and Nigeria Association of Small and Medium Enterprises.

Some state governments and the Federal Inland Revenue Services are currently slugging it out in court over who should VAT in their states.

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Adeniyi said, “It is important to also note that at a time when businesses are clamouring for streamlining and reduction of tax burdens, the ongoing challenge has the potential to make businesses pay double VAT because of the demands of the FIRS and state governments for remittance of VAT.

“More so, as the deadline for remittance of VAT collection falls due on 21st of every month. Businesses as the collecting agents are practically unclear on authority to remit to and without a clear path, this would further aggravate the pain on businesses.”

He added that the Federal Inland Revenue Services and states should not throw businesses under the bus.

“We appreciate the Lagos and Rivers state governments for the platform created to engage organised businesses in the course of this controversy.

“We appeal that the FIRS and the states should also engage, in the interest of enterprise competitiveness and national development.”

Adeniyi said that adding the current issue to accumulated issues facing Nigerian businesses would make survival of enterprises even tougher.