The director-general, Nigeria Employers Consultative Association (NECA), Mr Wale-Smatt Oyerinde, has commended the federal government over the suspension of telecom tax.
This is just as he noted, since businesses are currently struggling to survive rather than making profit, they should not be made to bear additional burdens.
“Suspension of the proposed telecoms tax by federal government, in view of the many economic challenges faced by operators and Nigerians in general is commendable,” he said.
Calling on government on the need to focus more on creating a favourable environment for businesses to address the challenges of rising unemployment and its consequential negative social effects , the NECA boss stressed that, “while the nation grapples with revenue challenges, we urge Government to equally drop the idea of increasing excise on spirits, alcoholic and non-alcoholic beverages as being proposed. These increases, if implemented, will not only worsen the already bad situation of the industry but will also create a major shock in the industry, leading to job losses.”
Furthermore he said, “Rather than overburden businesses that are already struggling, Government should explore other options for increasing revenue through widening the tax net, reducing governance costs, addressing the massive oil theft, and dealing with the unsustainable subsidy regime.”
He blamed the multiple taxes on business, noting that organised businesses currently face major operational and sustainability challenges and Government should not contribute to the demise of more businesses.
He expressed that, “businesses are not striving to be competitive again but are now more concerned with sustainability. The trend of multiplicity of taxes and other unfavorable economic factors have led to the shut down of many businesses while some others relocated to neighboring countries.”
