Lagos Chamber of Commerce and Industry (LCCI) has advocated tax breaks and concessions for investors by suspending all forms of taxes for health sector investors, agriculture and agro-processing, aviation and hospitality sectors for at least one year to hasten economic rebound in the aftermath of the current COVID-19 lockdown.
Also, the Nigeria Employers’ Consultative Association (NECA) says it is commencing a free online training of young entrepreneurs who would add to building the struggling Nigerian economy.
Timothy Olawale, the Director-General of NECA, said that the employer’s body is partnering with Redwood Consulting to offer the entrepreneurial training which is to run for six weeks.
“We’re offering entrepreneurship courses free, for a period of six weeks, beginning from April 2020 to June 2020. This is to contribute to economic and capacity development, by supporting access to online education for Nigerians, who have been mandated to stay at home to curb the COVID-19 pandemic,” said Olawale.
On how to achieve post-COVID-19 economic stability, Muda Yusuf, the Director-General of LCCI, said the government would also need to extend the filing of annual returns, including payment of due amounts to June 30, 2020.
He pushed for unconditional waiver of penalties and interests of all outstanding tax payments, temporary suspension of recently introduced 50 per cent increase in Value Added Tax (VAT till the end of 2020.
The DG of LCCI further called for a 50 per cent reduction in all taxes currently being paid by companies in manufacturing for one year, and the suspension of PAYE for all employees for a period of six months.
This, he explained, would put some money back in the hands of the employees during this period to strengthen the purchasing power of citizens and stimulate output within the economy.
“The COVID-19 pandemic has raised serious concerns about economic sustainability and business continuity, both of which are interdependent and mutually reinforcing.
Read Also: LCCI becomes first chamber in W/Africa to be ISO certified
“It has become imperative to commence conversations about policy measures and reforms that need to happen for the realization of desired continuity outcomes.
“It is thus important to begin to set agenda for the Nigerian economy after the pandemic – a post-pandemic rescue plan.
“This should be done through the injection of liquidity [depending on the fiscal space] or through policy measures that offer some accommodation that facilitates economic and business recovery.
“To save the economy from collapse, we need to salvage investments across all levels – micro, small, medium and large enterprises,” he said.
In recognising the efforts of health workers as front liners in the battle against the COVID-19 pandemic, Yusuf also proposed that their PAYE be suspended for one year.
For the real sector, the DG made a case for fiscal policy palliatives to include zero import duty on health sector raw materials and equipment to incentivise greater private sector investment in the health sector.
“Also, manufacturing raw materials and intermediate products should attract import duty waiver for six months to accelerate a rebound of the sector.
“Agro-processing inputs should enjoy import duty waiver for one year and there should be a suspension of excise duty payment for manufacturers for one year.
“There should be a greater commitment of government and its agencies to the patronage of made-in-Nigeria products by creating a strong monitoring framework to ensure compliance with the relevant executive order,” Yusuf said.
