Taiwo Oyedele, Fiscal Policy Partner and Africa Tax Leader at PwC has lamented the excessive tax placed by the National Assembly on companies’ profit in Nigeria.
He stated that it seems “it seems @nassnigeria is bent on taxing businesses out of existence,” via a Twitter post.
This comment comes in the wake of the proposed bill seeking to establish a National Youth Service Corps Trust Fund by the Nigeria Senate.
- Nairametrics reported that the Nigerian Senate passed a bill seeking to establish a National Youth Service Corps Trust Fund.
- The Trust Fund would be financed with a levy of 1% of the net profit of companies and organised private sector operating a business in Nigeria, a 0.2% of total revenue accruing to the federation account and any takeoff grant and special intervention fund as may be provided by the federal, state and local governments of the Federation.
- According to the sponsor of the bill, the proposed fund is to provide a sustainable source of funds for NYSC, skill Acquisition training and provision of start-up capital to corps members.
What the PwC tax expert is saying
However, Mr Oyedele stated that if the bill is endorsed by President Muhammadu Buhari, it will be in addition to at least 5 other taxes on the profits of companies in Nigeria.
Oyedele began by saying, “Yet another tax! This bill seeks to impose a levy of 1% of net profit on companies operating in Nigeria. Despite all evidence showing that more taxes will negatively impact the economy, it seems @nassnigeria is bent on taxing businesses out of existence.”
He added, “If assented to by @MBuhari, this will be in addition to at least 5 other taxes on the profits of companies in Nigeria: CIT, TET, NITDA, Police levy, NASENI and NYSC levy.”
He stated that Nigerian lawmakers should be doing more to incentivize businesses. He said, “the right to do at this time is to harmonise taxes (not introduce new taxes), broaden the tax base and expand the tax net.”
He added an interesting fact to the statement early this morning saying, “The number of income taxes alone introduced by 9th @nassnigeria is set to exceed the number of income taxes we had since independence notably: Police tax, NASENI levy, NYSC levy(Not even the military imposed as many taxes). We will remember this legacy!”
“The 9th @nassnigeria will go down in history as the most insensitive to the plight of businesses regarding the multiplicity of taxes despite the difficult operating environment. We will remember this legacy!” he added.