By Adedapo Adesanya
The Nigerian Employers’ Consultative Association (NECA) has lauded the decisive actions taken by President Bola Tinubu in fostering a more conducive business climate in Nigeria through strategic tax reform measures but sought more to alleviate the business environment.
NECA’s Director-General, Mr Adewale-Smatt Oyerinde, in a statement issued after Mr Tinubu signed four executive orders, said, “In this context, Tinubu’s bold intervention through several Executive Orders has been welcomed with great enthusiasm.”
The President signed four Executive Orders which includes the suspension of the five per cent excise tax on telecommunication services as well as the excise duties escalation on locally manufactured products.
“Particularly notable are the suspension of the five per cent excise tax on telecommunication services and the excise duties on items like tobacco, beer, wine/spirits, and the 10 per cent green tax by way of excise tax on Single Use Plastics.
“Additionally, the Import Tax Adjustment of two per cent and four per cent on imported motor vehicles of varying engine capacities has been put on hold.
“We are genuinely thrilled by the new Executive Orders; these amendments will undeniably enhance the operating environment and alleviate the high cost of doing business in Nigeria, especially in light of the recent fuel subsidy removal,” the NECA DG said.
He, however, said there was a need for further action, expressing the necessity to reconsider the introduction of Value Added Tax of 7.5 per cent on Automated Gas Oil or diesel and the outdated practice of minimum taxation.
According to him, if not addressed, these issues threaten to undermine the gains made by the recent reforms.
“Our businesses continue to be weighed down by these additional tax burdens; it is high time we reviewed such practices that deter economic growth and create hurdles in doing business,” he said.
Mr Oyerinde reaffirmed the association’s commitment to collaborate closely with the current administration, advocating for further policy changes that could significantly enhance the Nigerian business environment and contribute to national economic prosperity.
