May 04, (THEWILL) – The Nigeria Employers’ Consultative Association (NECA) has urged the Federal Government to suspend the implementation of the recently announced increase in excise duty as well as the introduction of new taxes and levies across the board.
The Association, in a statement issued by its Director-General, Adewale-Smatt Oyerinde, said the suspension of the increase was necessary for the survival of businesses.
Oyerinde said If the new tax regime is implemented, the increases will be counter-productive as they will aggravate the current rate of unemployment, encourage smuggling and discourage Foreign Direct Investment (FDI).
“The Roadmap, as previously agreed on Excise, should be adhered to in the spirit of policy consistency. If implemented, the increases will be counter-productive as they will aggravate the current rate of unemployment, encourage smuggling and discourage Foreign Direct Investment (FDI).
“It will also reduce the purchasing power of Nigerians and actively promote the relocation of businesses to other countries (Corporate-Japa). With the multi-dimensional challenges currently faced by organised businesses, a gift that Nigerians do not want is an increase in taxes,” he said.
Oyerinde urged the Government not to leave behind a legacy of tax burdens that would endanger the fragile growth achieved in the economy on the altar of revenue generation.
He also advised the Government to reappraise its adherence to the principles and spirits of Fiscal Discipline as enshrined in various legislations.
Oyerinde noted that with over 60 different taxes, levies and fees paid by businesses annually in Nigeria, the country is fast turning from a pariah state to investors.
“As the Voice of Organised Business in Nigeria and a critical Stakeholder in Nigeria’s economic renaissance, we reaffirm our commitment to Decent Work, Responsible Enterprises and the protection of Workers and Enterprise rights through all legal and legitimate means,” he said.
