NECA Seeks Complete Reversal Of 2023 Finance Act

The director-general of the Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, has called for a total reversal of the 2023 Finance Act.

This is as the Chartered Institute of Taxation of Nigeria (CITN) has expressed its full support towards the federal government’s initiative to set up the Presidential Committee on Fiscal Policy and Tax Reforms.

Oyerinde said some provisions of the Act are capable of driving organised business in Nigeria into extinction.

President Bola Tinubu had last week issued four Executive Orders suspending the Act and the implementation of arbitrary taxes, a development hailed by the business community as a relief for businesses in the country.

Speaking yesterday at the Nigeria Employers’ Summit, 2023, the NECA DG said rather than suspend the Act till September, 2023, the business environments in Nigeria rather wants absolute reversal of the Act.

According to Oyerinde, the implementation of arbitrary taxes has the potential to push organised businesses deeper into the hole of extinction.

He said, “Our view is this: we don’t really need suspension; we need an absolute reversal. We said if you find yourself in the hole, the first thing you do is to stop digging. Those new taxes, the plastic tax, the excise tax on carbonated drinks, they have the potential to dig organised businesses deeper into the hole of extinction.

“So what the executive orders have done and what we are happy about is it has stopped that trajectory into extinction and it has given us opportunity for engagement also.

“So between now and September, the extension was given for us to engage constructively and let government see the risk in those taxes”.

“Hopefully the president will see our reasons and then we call for a total and holistic reform headed by Taiwo. Now if you want to tax, you must take care of three elements. If you don’t deal with those three issues of: when do you want to tax, how much do you want to tax and what exactly do you want to tax, you will be destroying your industries from the other path,” he added.

Meanwhile, the Chartered Institute of Taxation of Nigeria (CITN) has expressed its full support towards the federal government initiative to set up the Presidential Committee on Fiscal Policy and Tax Reforms.

President Bola Ahmed Tinubu recently signed four Executive Orders with key Fiscal Policy measures featuring prominently, including the suspension of the 5 percent excise tax on telecommunication services and excise duties on locally manufactured vehicles.

CITN president, Mr. Samuel Agbeluyi, lauded these initiatives and said he expects that the Committee’s mandate would lead to improved revenue collection efficiency, promote transparency, foster a healthy tax culture, and encourage voluntary compliance.

He also called for open dialogue and engagement of all stakeholders in the Nigerian tax system for the reforms to be all inclusive and meaningful.

Agbeluyi confirmed CITN’s intention to participate fully as it had always done in the current reforms process.

Agbeluyi further praised President Tinubu for appointing a CITN member, Mr. Taiwo Oyedele, as the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.