Kemisola Owonikoko
Multiple taxation and regulations has been a concern for stakeholders in Nigeria’s economy, as it poses an impediment to economic development.
To address this challenge, a Regional Stakeholders Workshop was held in Ibadan, Oyo State, recently with the theme, “Multiple Taxation: An Impediment to Economic Development.”
Delivering the keynote speech the Executive Commissioner Stakeholder Management, Nigerian Communications Commission, Mr. Adeleke Adewolu addressed the misconceptions surrounding taxation, particularly the misguided notion of taxation as a penal tool on thriving business enterprise.
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He supports the initiative of government in using taxation as an instrument for socio-economic development in Nigeria.
However, Mr. Adewolu acknowledged that the presence of multiple taxation, which the World Bank has termed ‘nuisance taxes,’ poses a significant challenge to economic development in Nigeria.
Multiple taxation occurs when the same or similar taxes are imposed on the same income base, transaction, or person by one or more levels of government in one or more jurisdictions.
“The effect of multiple taxation is that it makes otherwise profitable businesses unprofitable, negatively impacts the ease of doing business, shrinks the tax base, incentivizes tax evasion, and complicates tax compliance.”
Despite these challenges, Mr. Adewolu noted that the National Tax Policy 2017 emphasizes the need to eradicate multiple taxation at all tiers of government.
“To this end, he disclosed that the President of the Federal Republic of Nigeria, His Excellency, President Bola Ahmed Tinubu, has signed a number of Executive Orders to curb arbitrary taxes in the country. Additionally, the inauguration of the Committee on Fiscal Policy and Tax Reforms by the President, aimed at harmonizing taxes, will provide an avenue to further engage various stakeholders in identifying pain points and critical concerns bothering tax and fiscal policies.
The workshop highlighted the need for adherence to the founding principles of taxation, which include neutrality, efficiency, certainty and simplicity, effectiveness and fairness, and flexibility.
Adewolu was optimistic that the workshop would clarify common misconceptions on taxation and foster a renewed zeal towards eradicating multiple taxes, ultimately creating a business-friendly environment for the economy to thrive.
The workshop was a platform for stakeholders to engage in fruitful discussions and brainstorming on viable solutions toward ending multiple taxation and boosting economic development.
The workshop which proved to be an invaluable platform for stakeholders to examine the negative impact of multiple taxation on economic development in Nigeria, the recommendations and resolutions made are expected to aid the government in eradicating the multiple tax structure, simplifying the tax system and fostering a more business-friendly environment.
BV.
