Nigerian Govt mulls stoppage of 190 taxes on businesses

The Federal Government, on Tuesday, has proposed a halt in 190 taxes levied on businesses across the country.

This was proposed by the Presidential Committee on Fiscal Policy and Tax Reforms in order to eliminate multiple taxation.

The panel presented its ‘Quick Win Report’ to President Bola Tinubu, who endorsed its far-reaching recommendations on tax and fiscal policies during a brief ceremony at the Presidential Villa, Abuja, on Tuesday.

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The Organised Private Sector, which backed the proposal of the committees blamed states for multiple taxation in the country.

The OPS lamented that multiple taxes had compounded the rising production costs, leading to reduced profit margins, supply chain disruptions, and a reduction in consumer spending.

Specifically, the telecommunication operators complained that the sector was one of the most taxed in the country with over 40 taxes directed at telecom firms.

Gbolahan Awonuga, Head of Operations for the Association of Licenced Telecoms Operators of Nigeria, claimed that the state governments were to blame for the issue of various taxes.

In response to the unfavourable business climate, the President implemented fiscal policy and tax measures in August with the goal of enhancing the country’s income profile and economic climate.

In his report to the President, the committee’s chairman, Mr. Taiwo Oyedele, stated that the group had recommended combining more than 200 taxes paid by Nigerian companies into only 10.

In his prayers to the President, Oyedele requested, among other things, the issuance of presidential executive orders as well as an emergency economic intervention bill (Executive Bill) to address the duplication of duties within the public service and to ensure responsible public financial management in order to get the most out of public resources and assets.

The President acknowledged the committee’s efforts and promised to assist the review and execution of its major recommendations in his remarks in response to their presentation.