Given the numerous economic difficulties encountered by operators and Nigerians in general, the Federal Government is to be praised for heeding the plea to postpone the proposed telecoms tax.
In addition, the employers’ group encouraged the government to abandon the notion of raising excise taxes on spirits, alcoholic, and non-alcoholic beverages.
According to NECA, if the increases are put into effect, they will not only make the industry’s already dire situation worse but will also cause a severe shock that will result in job losses.
Wale-Smatt Oyerinde, director general of NECA, stated that rather than burdening already struggling businesses, the government should look into other options for raising revenue by enlarging the tax base, cutting administrative expenses, addressing the massive oil theft, and dealing with the unsustainable subsidy regime.
He claimed that organized enterprises confront significant operational and sustainability issues right now and that the government shouldn’t encourage the closure of more companies.
He claims that instead of trying to become competitive once more, corporations are now more focused on sustainability. According to him, the proliferation of taxes and other unfavorable economic conditions have caused many enterprises to close their doors while others have moved to neighboring nations.
While further commending the government, Oyerinde said: “We commend the Federal Government for suspending the telecoms tax as it has the potential to compound the challenges of the sector and further burden Nigerians. At a time when the purchasing power of the citizens is being eroded by inflation and other negative economic indices and the telecoms industry is critically challenged, the best that the government can do is to provide relief for the citizens and business owners, notwithstanding its dwindling revenue.”
