By Habibat Aliu
The Nigeria Employers’ Consultative Association (NECA) has expressed concerns at some provisions of the finance bill, urging President Muhammadu Buhari to expunge all anti-business provisions in the bill.
The employers’ body lamented that it was absurd that the National Assembly would consider and unusually pass the finance bill, while the Senate ambushed stakeholders, inviting them for a public hearing in less than 24 hours, even as the House of Representatives scheduled its Hearing for January 2023.
NECA said it was surprising that the National Assembly would pass such an important Bill without the input and contributions of critical stakeholders.
To this end, it urged Buhari to request the National Assembly to do the needful by taking into cognisance, the concerns of organised business and expunging all anti-business provisions in the Bill.
Director-General of NECA, Adewale-Smatt Oyerinde, in a statement, commended President Muhammadu for not assenting to the Bill, following his signing of the 2023 Appropriation Bill into Law, lamented that while organised businesses are still faced with a burdensome number of taxes, the finance bill seeks to add additional burden on businesses.
According to him, it is worrisome that the Tertiary Education Tax (TET) was increased from 2.5 per cent to 3.0 per cent without “legacy regard for the current economic situation faced by businesses.”
Sharing insight on what he termed a “legacy of taxes and levies”, Oyerinde, noted that organised businesses are currently burdened with over 50 different taxes, levies and fees (both legally and illegally).
These taxes, he said, included Company Income Tax, Stamp Duties, Petroleum Profit Tax, Capital Gains Tax, Value Added Tax, Personal Income Tax, Withholding tax, Tertiary Education Tax, one per cent of payroll contribution to NSITF, 10 per cent of Payroll contribution to PenCom, one per cent of payroll ITF Levy, National Information Development Levy, Cabotage Levy, Radio and TV Licenses, Police Special Trust Fund Tax Levy, Niger-Delta Development Commission Levy, National Agency for Science and Engineering Infrastructure levy, Land Use Charge, Parking Fee, Consumption Tax, Road Tax, Standards Organisation of Nigeria Fees, Nigeria Content Development Levy, NAFDAC Levy, Nigeria Health Insurance Authority contribution and Signage Fees, among others.
According to him, increasing the Tertiary Education Tax is another burden too.
Speaking further, the Director-General, averred: “Increasing CIT rate for a gas-flaring company from the standard 30 per cent to 50 per cent is also worrisome, considering the fact these companies are already covered in the Petroleum Industry Act. This could be a recipe for further divestment.
“Also, the imposition of excise duty at rates to be specified via Presidential Order on all services including telecommunication services is too broad and vague. This could be subject to abuse and further strangulation of the business community.”
