Expert says new tax rule may kill businesses, cause job losses

Amid harsh economic realities, the organised private sector, yesterday, raised concerns over high taxation making the 2022 economy bleak.

In a statement yesterday, President, Abuja Chamber of Commerce and Industry, ACCI, Dr Al-Mujtaba Abubakar felicitating with Nigerians on New Year celebration, urged them to regard challenges of 2021 as a motivation for concerted efforts to persist in building their businesses despite the harsh fiscal environment.

Dr. Abubakar urged operators of small and medium scale businesses not to relent but continue to advocate for the improved business climate in Nigeria, while he acknowledged that the COVID-19, the pandemic has pushed businesses around the globe over the technology tipping point, given rising to new industry challenges, and has transformed businesses forever.

The Chamber also called the attention of the government to the issue of high taxation, with its consequent counterproductive effect, as it kills many businesses and deepens the unemployment crisis.

“We suggest broadening the tax base and reducing the tax rates. The increasing level of inflation, high taxes, and high-interest rates contribute to increasing the cost of production.

“This has resulted in many businesses not breaking even and many are closing shops. The situation is further complicated by insecurity challenges and the exchange rate instability.

“We recommend easing the harsh business environment by transforming regulatory agencies into facilitating bodies.

“In a drive to generate funds at all cost, businesses in Abuja are subjected to more than five levels of taxation.

Read also: Every adult in Plateau to pay tax of N300 from 2022

“This needs to change so that SMEs can thrive and employ more workers to ease the increasing level of unemployment.

“The Chamber believes that the economy grows and GDP multiplies when government’s policies, agencies, and programmes facilitate rather than impede businesses.” The statement read in part.

He further called for strong synergy between the public and private sectors to weather through the storms that might hit the business environment, while the Chamber was committed and ready to support government at all levels in the drive to grow the economy, create wealth and resolve national economic challenges.

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