The Association of Table Water Producers in Kogi State has issued a dire warning about the crippling effects of excessive and multiple taxation on their industry. Facing a barrage of levies from both federal and state revenue agencies, the association reports that over 36 table water factories have been forced to close their doors in Lokoja alone. This wave of closures has triggered significant job losses and exacerbated the economic hardships faced by those working in the sector. The association paints a bleak picture of an industry struggling under the weight of a complex and burdensome tax system, threatening the livelihoods of its members and the accessibility of affordable drinking water for the community.
The association points to a litany of taxes and levies as the primary culprits behind the industry’s decline. These include signage fees, haulage charges, environmental levies, and substantial certification and documentation fees imposed by agencies like the National Agency for Science and Engineering Infrastructure (NASDRA) and the Standards Organisation of Nigeria (SON). NASDRA charges N70,000 per factory for certification, while SON levies an additional N8,400 per factory. Beyond these fixed costs, producers also grapple with per-vehicle emblem charges of N17,500, vehicle branding fees of N15,000, and a daily haulage fee of N1,000 per truck. These accumulating costs create a significant financial burden that renders operations unsustainable for many producers.
The cumulative effect of these taxes has dramatically increased the cost of production. The association highlights the stark impact on the price of a bag of pure water, which has skyrocketed from N150 to N400. This sharp price increase directly affects consumers, particularly those with limited incomes, making access to safe and affordable drinking water increasingly difficult. The association argues that the current tax regime is not only detrimental to their businesses but also undermines public access to an essential commodity.
In an effort to address this crisis, the Association of Table Water Producers has appealed to Kogi State Governor Alhaji Ahmed Ododo for intervention. They have formally communicated their concerns through several letters, urging the government to consider relief measures and waivers on some of the more burdensome taxes. The association believes that a review and rationalization of the current tax structure are crucial for the survival of the industry. They advocate for a more conducive business environment that fosters growth and job creation, arguing that the current system is counterproductive and ultimately harms the state’s economy.
The association’s plea to the governor emphasizes the urgent need for action. They highlight the devastating impact of multiple taxation on their members and stress the importance of government intervention to mitigate the ongoing economic hardship. They request not only a review of the tax structure but also specific relief measures and waivers to help struggling businesses recover from the financial strain. Their appeal underscores the need for a balanced approach to taxation that considers the viability of businesses and their ability to contribute to the overall economy.
Despite the challenging circumstances, the association expresses optimism about Governor Ododo’s administration. They commend his commitment to the well-being of the people and express confidence that he will favorably consider their plea. Their statement concludes with a hopeful note, anticipating a positive response from the governor and a collaborative effort to address the critical issues facing the table water industry. They believe that a constructive dialogue with the government can lead to a sustainable solution that benefits both the industry and the citizens of Kogi State.
