" ITREALMS: NCC decries multiple taxation, says its impediment to economic growth - ITREALMS

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Monday, September 11, 2023

NCC decries multiple taxation, says its impediment to economic growth - ITREALMS

ITREALMS ... making leadership SENSE with digital news!

The Nigerian Communications Commission (NCC) has decried multiple taxation in the country, saying that is an impediment to economic development, reports ITREALMS.
NCC decries multiple taxation, says its impediment to economic growth - ITREALMS
Speaking through the Executive Commissioner for Stakeholder Management at NCC, Mr. Adeleke Adewolu, at a regional stakeholders workshop on multiple taxation and regulations recently in Ibadan, Oyo State, he said that Nigeria is widely known to be not only Africa’s most populous country but also the largest economy on the continent and it is expected that strong economic growth in Nigeria would generate substantial prospects for growth and spillovers for the whole West African region.

As said by him, despite the prospect of accelerated economic growth, the presence of multiple taxation, which the World Bank has termed ‘nuisance taxes’ has and continued to prove to be a bane on economic development in the country.

He noted that though taxation, in and of itself, is a veritable tool for economic development.

Taxation, Adewolu said, is the backbone for public finance, stressing that it provides guaranteed and sustainable sources of funding for social programs and public investments, it also serves as a tool curated by the government to effectively and efficiently distribute our commonwealth.

“It is thus evident that taxation is critical for making growth sustainable and equitable. Thus, taxation by design is an instrument for economic development and it is important to acknowledge and support the initiative of all tiers of Government in using taxation as an instrument for socio-economic development,” he said.

Further, he decried that tax initiatives by the various tiers of Government have become cancerous to economic development.

“These type of taxes typically manifest themselves in the form of multiple taxation and by design, they reverse growth, stifle innovation and discourage investment. In parabolic terms, they are the scarecrows mounted by government to disincentivize development,” he lamented.

The Commissioner emphasised that the National Tax Policy 2017 on the need to eradicate multiple taxation at all tiers of government.

Specifically, the Policy stated that taxes similar to those being collected by a level of Government should not be introduced by the same or another level of Government, positing that the Federal, State and Local Governments shall ensure collaboration in harmonizing and eliminating multiple taxation

He pointed out that President Bola Ahmed Tinubu, in his commitment to address the vexed issue of multiple taxation, recently signed a number of Executive Orders to curb arbitrary taxes in the country.

“Also, the inauguration of the Committee on Fiscal Policy, Tax Reforms by the President, which is geared towards harmonizing taxes will provide an avenue to further engage various stakeholders in order to identify their pain points and critical concerns bothering tax and fiscal policies. This would also facilitate a conducive environment for conducive for local and foreign investment into the country,” he said.

Describing multiple taxation as the imposition of the same or similar taxes on the same income base, transaction or person by one or more levels of Government, in one or more jurisdictions.

“While a level of multiplicity is expected in federal system of governance, the levying of a particular tax on the same person/entity, in respect of the same liability by more than one State or Local Government Council should be avoided,” he advocated.

Ayo 'Mide/Editor

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