"Please Don't Do This": Private Sector Begs Buhari as FG Announces New Taxes

• Private sector has requested the federal government suspend the implementation of new taxes
• They warned that the proposed taxes could lead to increased unemployment, smuggling, and decreased purchasing power of Nigerians
• The group is suggesting that government should instead seek fiscal reforms and reduces wastage

The Organised Private Sector (OPS) has appealed to the Nigerian government to suspend the implementation of new taxes, arguing that businesses are struggling to survive.

OPS warned that if the proposed taxes were implemented, it would lead to increased unemployment, smuggling, reduced foreign direct investment, decreased purchasing power of Nigerians, and businesses relocating to other countries.

Legit.ng had earlier reported the full details of taxes the federal government is set to introduce.

Some of the taxes and excise duty are

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• N75 per litre charge on imported beer or stout
• 2% Import Adjustment Tax (IAT) for vehicles with engine sizes of 2 liters, 4% IAT for those with 4 liters and above
• 10% Green Tax on Single Use Plastics (SUPs) such as plastic containers, films, and bags
• 2% IAT levy on vehicles with engine sizes between 2000 cc and 3999 cc, 4% IAT on those with engine sizes of 4000 cc and above
• 5% excise duty on telecommunication services for mobile telephone services (GSM), fixed telephone, and both postpaid and prepaid internet services

Private sectors beg Nigerian government

In a statement issued by the Nigeria Employers’ Consultative Association, NECA, its current secretariat, said that instead of introducing and increasing tax, what was agreed should be adhered to, in the spirit of policy consistency, Vanguard reports.

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The statement read:

“It is no gainsaying that organized businesses are bleeding and continues to struggle for survival. To this end, we urge the federal government to, as a matter of urgency, suspend implementation of the recently announced astronomical increase in excise duty, the introduction of new taxes and levies across board.

”The road-map, as previously agreed, should be adhered to, in the spirit of policy consistency. The increases, if implemented, will be counter-productive as it will aggravate the current rate of unemployment, encourage smuggling, discourage foreign direct investment, FDI,, reduce the purchasing power of Nigerians and actively promote the relocation of businesses to other countries.

“With the multi-dimensional challenges currently faced by organized businesses, a gift that Nigerians do not want is increase in taxes.

The group further asked that the outgoing government to avoid leaving behind a legacy of tax burdens

”The federal government should not leave behind a legacy of tax-burdens that would endanger the fragile growth achieved in the economy on the altar of revenue generation.

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”What the government should do is to reappraise its adherence to the principles and spirits of fiscal discipline as enshrined in various legislations. With over sixty different taxes, levies and taxes, Nigeria is fast becoming a pariah state to investors.”

Economists counter Buhari's claim Nigerian economy is better under him

Meanwhile, Economists, Industrialist and Manufacturers have questioned President Buhari's claim Nigeria's economy is better under him

Buhari had in an interview granted to international media firm, Bloomberg spoke about the successes of said his administration

The president also stated that he is leaving Nigeria’s economy better than he met it in 2015 when he assumed office

Source: Legit.ng