The Nigerian Employers’ Consultative Association (NECA) has the new Executive Orders signed by President Bola Tinubu and suspension of the implementation of the Finance Act 2003 as a relief for overburdened businesses in Nigeria.
Adewale-Smatt Oyerinde, the director-general of NECA, who saluted the president’s courage, decried that “the issue of multiplicity of taxes has become a major challenge to organised businesses in the country.
“Currently businesses are made to pay over 50 different taxes and sundry charges, among which are: corporate income tax, import duties, export duties, excise duties, rents, capital gains tax, personal income tax, value added tax, stamp duties, property tax, licences, motor parking fee, motor vehicle fee, withholding tax, land tax, market licence fee, road tax, business premises, dividend tax, NHIS levy, advert fee, regulation fees, the new NYSC levy as well as the regular user charges such as electricity, water, disposal fee, etc.
“This huge tax burden, no doubt, has been a clog in the wheel of the overall performance of organised businesses over the years. We had at numerous fora expressed concern on the escalation of taxes, including exercise duties and its adverse implication on the business operating environment,” said Oyerinde.
He commended the intervention of the president, saying, “We are elated with the news of the Executive Orders, particularly with the suspension of the five percent Excise Tax on telecommunication services; suspension of Excise Duties on Tobacco (30% ad valorem rate with the introduction of specific rate of N4.2/stick of cigarette for 2022; N4.7 per stick for 2003; and N5.2/stick in 202); Beer (N40/lite in 2002; N45/lite in 2023 and N50/lite 2024); and Wine/Spirit (20% ad valorem rate with a specific rate of N50/litre in 2022) as proposed in the 2022 Fiscal Policy Statement. The suspension of 10 percent Green Tax by way of Excise Tax on Single Use Plastics (SUPs), including plastics containers and bottles; Import Tax Adjustment (IAT) of two percent on imported motor vehicles of 2000 cc to 3999 and four percent on 4000 cc engines. The new Orders will no doubt, support the efforts at improving the operating environment and mitigate the high cost of doing business in Nigeria, particularly with the aftermath of the removal of fuel subsidy.”
