The Chartered Institute of Taxation of Nigeria (CITN) has called on the federal government to address the pressing issue of multiple taxation imposed by various government agencies in a bid to encourage foreign investments.
CITN’s chairman for Abuja chapter, Kennedy Iwundu, raised this concern during the CITN Week held in Abuja on Thursday.
He emphasized that the prevailing multiple taxation problem has driven some investors to opt for importation rather than establishing production companies, resulting in adverse effects on the country’s business landscape.
Speaking at the CITN Week, themed ‘Tax Reforms Digitalisation and Its Impact on Doing Business In Nigeria,’ Kennedy Iwundu urged tax professionals to focus on the current tax system and devise effective solutions to be presented for tax reforms.
He highlighted that the existing scenario, where the Federal, State, and Local Government Areas each have an extensive list of taxes and levies, poses a significant hindrance to business growth.
Iwundu stressed that the excessive burden of multiple taxation discourages both foreign and local investments from contributing to the growth of the Nigerian economy.
The complexity of the current tax system, which includes multiple federal taxes such as company income tax and various sector-specific collections, presents a serious challenge for investors, according to the CITN chairman.
In a show of support for the Federal Government’s initiatives, the Chartered Institute of Taxation of Nigeria applauded the establishment of the Presidential Committee on Fiscal Policy and Tax Reforms.
President Bola Tinubu recently signed four Executive Orders, including the suspension of the five percent excise tax on telecommunication services and excise duties on locally manufactured vehicles.
Mr. Samuel Agbeluyi, the President of CITN, expressed high expectations that the committee’s mandate would lead to enhanced revenue collection efficiency, promote transparency, foster a healthy tax culture, and encourage voluntary compliance.
To encourage a favorable business climate and attract foreign and local investments, stakeholders stress the urgency of implementing tax reforms and digitalization to streamline the taxation process and alleviate the burden of multiple taxes on businesses in Nigeria.
As the CITN’s call for action gains momentum, the government’s Presidential Committee on Fiscal Policy and Tax Reforms will be tasked with devising and implementing measures to address the issue of multiple taxation and create a more conducive environment for business growth.
Stakeholders hope that these efforts will foster increased foreign investments and bolster the Nigerian economy in the long run
