The Nigerian Employers’ Consultative Association (NECA) has commended the recent measures adopted by President Bola Tinubu-led administration to create enabling business environment in Nigeria through strategic tax reforms.
The association’s Director-General, Mr. Adewale-Smatt Oyerinde, gave the commendation in a statement issued on Thursday following the signing of four executive orders by the President.
The Director-General stated: “In this context, Tinubu’s bold intervention through several Executive Orders has been welcomed with great enthusiasm.
“Particularly notable are the suspension of the five percent excise tax on telecommunication services and the excise duties on items like tobacco, beer, wine/spirits, and the 10 percent green tax by way of excise tax on Single Use Plastics.
“Additionally, the Import Tax Adjustment of two percent and four percent 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”, he added.
Oyerinde, however, said there was 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the necessity to reconsider the introduction of Value Added Tax of 7.5 per cent on Automated Gas Oil or diesel, and the outdated practice of minimum taxation.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, these issues, if not addressed, threaten to undermine the gains made by the recent reforms.
He lamented that businesses had continued to be weighed down by the additional tax burdens and canvassed the urgent need to review such practices that deter economic growth and create hurdles in the path of doing business.
The NECA boss reaffirmed the association’s readiness to collaborate closely with the current administration, calling for more fiscal policy changes that could significantly enhance Nigeria’s business environment and contribute to the nation’s economic prosperity.
