The Nigerian Institute of Quantity Surveyors (NIQS), Ekiti State Chapter, has called for proper implementation of the tax reforms, when it becomes law, especially the value added tax, so as to avoid negative impact on service delivery.
The Surveyors who made this appeal on Thursday in Ado-Ekiti at a one-day workshop with the theme: ‘The Tax Law Reforms: Implications on the Nigeria’s Construction Industry, said that Quantity surveyors are concerned about the fair implementation of value added tax , so as to protect the interest of clients.
Speaking at the forum, the State Chairman of the Association, Comfort Ade-Ojo said that the reforms must take into cognizance the fact that most of the materials used in the construction industry are imported into the country.
“As quantity surveyors, we are like cost experts, we are like the accountants, the cost managers in the construction industry. There is nothing you do including your design, building, the structure, all comes with a cost. So we stand to protect the client’s interest to get value for money, whatever they spend, they get value for it.
“Now that the Federal government has come up with Tax Reforms, so many of the construction materials are imported and they will be affected by VAT. So it is important for us as professionals to know how these taxes will work for us, the consultants and the clients who bear the burden of the taxes at the end of the day. It will help us to know what to tell our clients, what to build into our rates and what to tell contractors so that they don’t lose money.”
Speaking at the workshop, the Chairman Ondo State chapter of the Quantity Surveyors, Temitope Momoh said that though when implemented the tax reforms could be advantageous to the construction industry, there is need for proper understanding of what it entails.
“As quantity surveyors we look at the implementation of the Tax Reforms, we feel that if properly implemented, it will create an advantage to the construction industry. However, there is a need for proper understanding of the reforms because the implementation will affect our delivery. There is a need to incorporate the changes in the tax reforms into pricing, building of rates and delivery of projects and services.”
In his remarks, the Ekiti State Internal Revenue Service (EKIRS), Olaniran Olatona explained that the tax reform bill is not a policy designed to burden Nigerians but to alleviate poverty.
“The Tax reforms will alleviate poverty at the end of the day, but there is lots of give and take. The concerns of the professionals are in VAT. they have been made to understand that yes, there will be VAT but there is also the input part they can save from VAT that will make it easier and less burdensome for them.”
On his part, the Director-general, Bureau of Local Content in Ekiti State, Olalekan Ijidale said the purpose of taxation would enable the state government to deliver more projects for the benefits of the residents.
He explained that the state government is not an enemy of the citizens, saying taxes collected are returned to the public through infrastructural developments.
