The Centre for the Promotion of Private Enterprise has said that “it is regrettable that National Assembly hurriedly passed the 2022 finance bill without the benefit of input from citizens whom they were elected to represent. This is a major letdown by the National Assembly in its representation role in our democracy. The action is not consistent with the ideals and principles of our democracy because sovereignty belongs ultimately to the people. What the National Assembly has done is tantamount to disrespect, disregard and contempt of the Nigerian people and the business community. The Bill that has been passed contained the following provisions, among others: imposition of excise duties on all services with rates to be determined by a presidential order; imposition of 0.5% tax on all eligible imports from non-African countries to fund Nigeria obligations to international organisations; an increase in Tertiary Education Tax from 2.5% to 3% of company profit”
A statement signed by Muda Yusuf, Director CPPE said “All of these have far-reaching implications for investors and citizens. It will affect the cost of production; it will affect operating cost and would undermine investors’ confidence. It has profound inflationary implications.It will effectively move corporate tax to almost 35% which is one of the highest globally. Currently, corporate tax is 30%; there is tertiary education tax of 2.5%; NITDA tax of 1%; NASENI Levy of 0.25%; Police Trust Fund tax 0.005%. Meanwhile, the National Assembly has already passed a bill imposing 1% tax for NYSC fund [awaiting the assent of the president] and another 1% Tertiary Health Levy is being planned. In the meantime, investors are grappling with macroeconomic headwinds including depreciating exchange rate, illiquidity in the official forex window, spiking energy cost, weak purchasing power, rising interest rate and surging inflation.
“Meanwhile, companies currently pay multitude of taxes, fees, levies to state governments, local governments and regulatory agencies. This is not the way to promote economic recovery, job creation and poverty alleviation. Already 133 million citizens are in extreme poverty. These measures would further impoverish the citizens as these additional taxes would be ultimately borne by them. We appeal to President Buhari not to leave a legacy of unbearable tax burden for investors in the Nigerian economy. The torrent of taxes, levies, fees is crippling business. We submit that the President should withhold assent on the 2022 Finance Bill until the National Assembly properly engages stakeholders as required by legislative protocols”.
