January 4, 2023

The Nigeria Employers’ Consultative Association (NECA) has expressed dissatisfaction over some of the provisions of the finance bill including the increased Tertiary Education Tax (TET) from 2.5 per cent to 3.0 per cent.

NECA’s Director-General, Mr. Adewale-Smatt Oyerinde, who expressed worry in a statement on Wednesday in Lagos, said the TET was increased without regard for current economic situation faced by businesses.

According to him, organised businesses are currently burdened with over 50 different taxes, levies and fees – both legally and illegally.

“These taxes include company income tax; stamp duties; petroleum profit tax; capital gains tax, value added tax; personal income tax; withholding tax; tertiary education tax, among others.

“Increasing the Tertiary Education Tax is another burden too much.

“Also, increasing CIT rate for a gas-flaring company from the standard 30 per cent to 50 per cent is also worrisome, considering the fact these companies are already covered in the Petroleum Industry Act: this can be a recipe for further divestment.

“Also, the imposition of excise duty at rates to be specified via presidential order on all services including telecommunication services, is too broad and vague.

“This can be subject to abuse and further strangulation of the business community, “ he said.

He urged President Muhammadu Buhari to request the National Assembly to do the needful by taking into cognisance, the concerns of organised businesses and expunge all anti-business provisions in the bill.

Oyerinde said: “It is absurd that the national assembly will consider and pass the finance bill in an unusual manner.

“It was surprising that the national assembly will pass such important Bill without the input and contributions of critical stakeholders.”