NECA to FG: Protect businesses from collapse... don't tax them out of existence

NECA to FG: Protect businesses from collapse… don’t tax them out of existence

September 19

10:02 2022

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The Nigeria Employers’ Consultative Association (NECA) says organised businesses are faced with over 50 different taxes, levies and fees at all tiers of government.

Wale Oyerinde, director-general, NECA, said this in a statement on Sunday.

Oyerinde said the national assembly is working on five bills, which sought to impose taxes on organised businesses, in addition to the notable taxes and levies.

According to him, organised businesses should not be made to suffer the lack of proper economic planning and political will that have pervaded successive administrations.

“While debt and paucity of revenue are challenges that are acknowledged, organised businesses should not be made to suffer the lack of proper economic planning and political will that have pervaded successive administrations,” he said.

“At the last count, organised businesses are presently faced with over 50 different taxes, levies and fees at all tiers of government, some of which are duplicated.

“Currently, at the national assembly, there are over five different bills, which seek to impose various taxes and levies on organised businesses in addition to the notable taxes and levies which are of general application.

“Such as the National Information Technology Development Levy, Education Tax (or Tertiary Education Tax), National Social Insurance Trust Fund, Company Income Tax, Television and Radio License Fee, Local Content Levy, Stamp duty, among others.”

The NECA DG said while tax is a global phenomenon, governments seek to protect their most productive sectors rather than tax them out of existence.

“At a time when government should do all that is necessary to protect businesses from total collapse and reduce the increasing unemployment rate, there are proposals to further increase excise tax on select products, including the spirits, alcoholic and non-alcoholic products,” he added.

”This action will not only reduce the competitiveness of the industries but will also increase the costs of doing businesses and further reduce their potential sustainability.”