Taiwo Oyedele, the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, and other interested parties have demanded tax breaks for companies doing business in Nigeria.
The third National Advertising Conference (NAC), held in Abuja over the weekend, featured speeches from the stakeholders. As part of its continuing economic reforms, it encouraged the federal government to take into consideration tax holidays for specific categories of firms.
They claim that there are over 200 different kinds of taxes in Nigeria, 60 of which are recognized by law. They claimed that it is challenging for firms to prosper in the face of issues including inadequate infrastructure, the energy crisis, and institutional corruption.
The Advertising Regulatory Council of Nigeria (ARCON), in partnership with the Association of Advertising Agencies of Nigeria (AAAN), Media Independent Practitioners Association of Nigeria (MIPAN), Out-of-Home Advertising Association of Nigeria (OAAN), Broadcasting Organisations of Nigeria (BON), and Experiential Marketing Association of Nigeria (EXMAN), organized the conference with the theme “Marketing Communication as an Enabler of National Transformation.”
It would be impossible to conduct business in Nigeria, fully comply with all legal requirements, and pay all taxes, according to Oyedele, who made this claim in a paper titled “The Current Economic Reality in Nigeria and Imperatives of Reform.”
He added, “That has not and will never help us,” noting that higher taxation does not translate into higher revenue.
He emphasized, “There are many examples that show the more revenue you collect, the fewer taxes you have.”
The tax expert pointed out that Nigerians are dissatisfied with their leaders, not because they don’t want to pay taxes, but rather because they don’t care about it anymore.
“A tax study on the perception of whether you should pay your taxes, whether paying your taxes on time is right, and whether evasion is punishable was very revealing,” the speaker stated. The study was carried out three years ago by the Nigerian Economic Summit Group (NESG).
“As a result, only 17% of adults think paying taxes is a good idea, and 83% plan to avoid paying taxes and not feel guilty about it. That hasn’t always been the case. They claimed that because they had mistrust for the government. Second, they want to know what they will receive in exchange for their paid taxes. They added that the procedure is too crooked and complicated.”
Dr Tayo Adeyanju, the Chief Executive Officer (designate) of NESG, also spoke up, asking, “How can a country defend 200 types of taxes, 60 of which are official? Is it not feasible? The governors have heard us say that is not sustainable. Taxes with a single-digit amount will have an impact
