NECA Decries Increased Taxes On Businesses

The Nigeria Employers’ Consultative Association (NECA) decried the increasing imposition of over 50 different taxes, levies, and fees on businesses by local, state, and federal governments.

This is even as the association raised the alarm over the five different Bills at various stages of legislation in the National Assembly, all seeking to impose taxes and levies on businesses.

The Director-General of NECA, Adewale-Smatt Oyerinde, listed some of the existing levies including the National Information Technology Development Levy (NITDA Levy), Education Tax (or Tertiary Education Tax), National Social Insurance Trust Fund (NSITF), Company Income Tax (CIT), Television and Radio License Fee, Local Content Levy and Stamp duty, among others.

He lamented that the action will not only reduce the competitiveness of the industries but will also increase the cost of doing business and further reduce the potential sustainability.

Oyerinde pointed out that debt and paucity of revenue are some of the challenges businesses are already dealing with and should not be made to suffer the lack of proper economic planning and political will that have pervaded successive administrations.

He decried that at a time when the government should do everything 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 spirits, alcoholic and non-alcoholic products.

Oyerinde said the government would do well not to further burden the real sector with additional taxes and stringent regulatory environment, taking into cognisance other challenges such as shortage of Forex and stringent regulatory environment as well as non-alignment of fiscal and monetary policies.