Federal, state and local governments are working on a document that will contain the lists of taxes and levies applicable in the economy for the three tiers of government.
She said the National Economic Council (NEC) constituted an ad hoc committee to review the presentation made by the Manufacturers Association of Nigeria (MAN) to the NEC on multiple taxation and other challenges facing businesses in the country which necessitated the creation of the ministerial task team to handle the matter.
"This is particularly harmful to the economy because multiple taxation increases the cost of doing business in Nigeria, discourages local trade and investment and also gives a negative perception of the Nigerian business environment to foreign investors.
"According to the MAN report, some states have as many as 97 different taxes, levies and charges that are imposed on businesses.
"This is simply not economically viable - the costs to the government of administering these various taxes and the costs to business of paying these taxes outweigh their benefits to both the private businesses and the government," she said.
Okonjo-Iweala added that a recent World Bank report shows that for every N100 that businesses have to pay in taxes, they pay about N35 in compliance costs. "This is a waste of capital that could be reinvested in these businesses to grow them and create more jobs for our economy. By streamlining and harmonizing taxes across the federation, we would increase Nigeria's productive potential.
"If Nigeria will continue attracting foreign investment, diversify our economy and create more jobs, and become one of the top 20 economies of the world by 2020, we must get our tax system right. I want to use this opportunity to commend the Federal Inland Revenue Services for its hard work in this respect - particularly in boosting revenue mobilization over the past few years," she also said.
Speaking at the meeting the acting Chairman, Federal Inland Revenue service, Kabir M. Mashi, said there is a parallel sub-committee of NEC working on fees and charges payable by operators in the telecoms business in the country.
"In this regard, the Joint Tax Board has been mandated to liaise with Nigerian Communications Commission to obtain these fees and charges as contained in their regulations," he said.
A meeting was held yesterday in Abuja with the representatives of the federal and state governments to finalise the process.
Almost all the stakeholders at the meeting agreed that the issue of multiple taxation is a menace that should be curtailed.
Speaking at the meeting, Coordinating Minister of the Economy and Finance Minister, Dr Ngozi Okonjo-Iweala said despite several attempts by the government to tackle the issue of multiple taxation, it has remained unabated - affecting both big and small businesses and the movement of goods and services in the country.
Almost all the stakeholders at the meeting agreed that the issue of multiple taxation is a menace that should be curtailed.
Speaking at the meeting, Coordinating Minister of the Economy and Finance Minister, Dr Ngozi Okonjo-Iweala said despite several attempts by the government to tackle the issue of multiple taxation, it has remained unabated - affecting both big and small businesses and the movement of goods and services in the country.
She said the National Economic Council (NEC) constituted an ad hoc committee to review the presentation made by the Manufacturers Association of Nigeria (MAN) to the NEC on multiple taxation and other challenges facing businesses in the country which necessitated the creation of the ministerial task team to handle the matter.
"This is particularly harmful to the economy because multiple taxation increases the cost of doing business in Nigeria, discourages local trade and investment and also gives a negative perception of the Nigerian business environment to foreign investors.
"According to the MAN report, some states have as many as 97 different taxes, levies and charges that are imposed on businesses.
"This is simply not economically viable - the costs to the government of administering these various taxes and the costs to business of paying these taxes outweigh their benefits to both the private businesses and the government," she said.
Okonjo-Iweala added that a recent World Bank report shows that for every N100 that businesses have to pay in taxes, they pay about N35 in compliance costs. "This is a waste of capital that could be reinvested in these businesses to grow them and create more jobs for our economy. By streamlining and harmonizing taxes across the federation, we would increase Nigeria's productive potential.
"If Nigeria will continue attracting foreign investment, diversify our economy and create more jobs, and become one of the top 20 economies of the world by 2020, we must get our tax system right. I want to use this opportunity to commend the Federal Inland Revenue Services for its hard work in this respect - particularly in boosting revenue mobilization over the past few years," she also said.
Speaking at the meeting the acting Chairman, Federal Inland Revenue service, Kabir M. Mashi, said there is a parallel sub-committee of NEC working on fees and charges payable by operators in the telecoms business in the country.
"In this regard, the Joint Tax Board has been mandated to liaise with Nigerian Communications Commission to obtain these fees and charges as contained in their regulations," he said.
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