NACCIMA, MAN extol Tinubu’s intervention on taxes, express optimism
By Felicia Nwosu
Dele Kelvin Oye, the National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, (NACCIMA), has extolled the strategic move by President Bola Ahmed Tinubu in providing requisite stimulus to encourage easy way of doing business. This is through the suspension of the five per cent Excise Tax on telecommunication services as well as the Excise Duty escalation on locally manufactured products.
The business leader commended the decision by the president to sign executive orders deferring the commencement of the tax changes as contained in the Finance Act and Customs, Excise Tariff (Variation) Amendment Order.
The NACCIMA president lauded the reformative and transitional initiative which was aimed at reviewing complaints about multiple taxation and other anti-business inhibitions faced by various business operators.
Oye noted that the adverse effect of the economic headwinds is taking a toll on businesses, while stating that such transformative policies are apt to ensure that Nigerian businesses are relieved of undue burden to enable them to flourish as well.
“We note that the tax changes were intended to raise revenue while addressing important public health and environmental concerns. However, the lack of adequate notice and clarity on the implementation of the changes have resulted in significant challenges for affected businesses, including rising costs, falling margins and capacity underutilization.
On another hand, Segun Ajayi-Kadir, Director General, Manufacturers Association of Nigeria (MAN}, has also extended his appreciation and commendation to Nigeria’s president on the suspension of tax increments, confirming that it will bring a sigh of relief to manufacturers.
The MAN DG, who expressed empathy and understanding over the government’s need for taxes to improve citizen’s welfare, also suggested the need to develop a strategic framework that will bring a substantial number of taxable individuals and businesses that are not in the tax net into the fold.
Ajayi-Kadir said the pursuit of tax increments as enunciated in the 2023 Fiscal Policy Measures (FPM) initiated by the previous administration was inimical to the growth of the manufacturing sector.
“It is worthy of commendation that the President Tinubu took due and far-sighted notice and consideration of the concerns. In keeping with the trend of positive policy initiatives that we have seen with his administration, the four executive orders released earlier today have put paid to the anxieties of manufacturers in the affected sectors in particular and operators in the expansive value chain in general.
“The suspension of the obnoxious aspects of the 2023 FPM, which arbitrarily imposed an additional tax burden on the manufacturing sector, is a welcome development and has removed a looming clog on its operations and productivity. “Manufacturers in the affected sector are pleased and we can now reconnect with our projections and plans made at the beginning of the year,” he said.
Recently, President Bola Tinubu signed four Executive Orders, which include the suspension of the five per cent Excise Tax on telecommunication services as well as the Excise Duty escalation on locally manufactured products. Some of the suspended taxes were issued through Executive Orders by former President Muhammadu Buhari at the twilight of his administration.
They include Corporate Income tax, Import duties, Export duties, Excise duties, Rents, Capital Gains tax, Personal Income tax, Value Added tax, Stamp duties, Property tax, Licenses, Motor Parking fee, Motor Vehicle fee, Withholding tax, Land tax, Market License fee, Road tax, Business Premises, dividend tax, NHIS levy, Advert fee, Regulation fees, the new NYSC levy.The President also suspended the 2023 Finance Act 2023 deferring the date of its commencement from 28th May, 2023 to 1st of September, 2023. Some of the suspended taxes were issued through Executive Orders by former President Muhammadu Buhari at the twilight of his administration.
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