Article Summary
- NACCIMA sees the census as an opportunity for the government to widen the tax base of the population in the country.
- Widening the tax base is better than increasing tax rates and multiplying taxes on the already over-taxed few individuals and OPSN companies, according to the association.
- Census is expected to be a 3-day exercise that would commence on May 3 and end on May 5 across the country.
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) urged that the Federal Government to use details and results from the upcoming census to expand Nigeria’s tax base.
This was disclosed by its National President, Ide John Udeagbala, during the NACCIMA second-quarter news conference on Thursday in Lagos.
The 2023 Population and Housing Census is to start on May 3, 2023.
Tax Base
Ide John Udeagbala stated that the census can also be used to harmonise the various data platforms into a central database which allows FG to widen the country’s tax base.
He urged that the data can be harmonized through the use of data platforms such as the National Identification Number (NIN), and Bank Verification Number (BVN) among others.
- “The 2023 population census could not have come at a better time and as the first digital census to be carried out in Nigeria; it is hoped this will meet global best standard.
- “NACCIMA sees this census as an opportunity for government to widen the tax base of the population in the country, instead of increasing tax rates and multiplying taxes on the already over-taxed few individuals and OPSN companies.
- “NACCIMA is also concerned by any proposal to increase taxes and therefore calls on the incoming government to reconsider any thoughts on a further tax increase, especially the Value Added Tax (VAT).
Mining
On the growth of the Mining sector, he acknowledged the private sector’s concern about the several issues which had constrained the growth of the mining sector, including, poor infrastructure, weak regulatory framework and institutions, lack of oversight, best practices and data.
- “Furthermore, concerns over illegal mining, lack of protection for legal miners as well as the dichotomy between federal and state governments have all contributed to constraining investments in the sector.
- “We call on the government to promote investment in this sector through the provision of necessary infrastructures and policies that enhance ease of doing business in this sector.”
He urged the incoming government to consider a reduction in the size of the government to reduce costs and save funds for infrastructural development.
Backstory
As Nigeria is expected to inaugurate a new administration, there have been talks of increasing taxes to deal with Nigeria’s rising debt profile.
However, some private sector groups have urged against that, Nairametrics reported recently that any plan to increase Taxes to deal with Government deficit spending will weaken the purchasing power of individuals and stifle consumption, according to a statement by the Nigeria Employers’ Consultative Association (NECA) Director-General, Mr Adewale-Smatt Oyerinde reacting to the IMF’s recommendations in its latest Fiscal Monitor report, “On the path to Policy Normalisation.”
Census
FG confirmed that the population and housing census would be a 3-day exercise that would commence on May 3 and end on May 5 across the country.
The exercise which was initially scheduled for March 29 to April 2 was shifted due to the postponement of the 2023 gubernatorial and state assembly elections by the Independent National Electoral Commission (INEC), assuring Nigerians of a credible population and housing census that would be transparent and acceptable.
