OPS rejects Financial Bill, says it‘ll worsen business woes

 •Begs Buhari not to assent to bill

The Organised Private Sector of Nigeria, OPS, has rejected the Financial Bill passed by the National Assembly, NASS, warning that some provisions of the bill would worsen and kill businesses struggling to survive. 

OPS comprises the Manufacturers Association of Nigeria, MAN, Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, Nigeria Employers Consultative Association, NECA, Nigeria Association of Small-Scale Industries, NASSI, and Nigeria Association of Small and Medium Enterprises, NASME.

The group  pleaded with President Muhammadu Buhari not sign the bill into law until some of the toxic provisions were expunged. 

OPS, which spoke through NECA Director-General, Adewale-Smatt Oyerinde, recalled that President Buhari had refused assent to the bill when he signed the 2023 Appropriation Bill into Law.

While commending the President for not signing the bill into law, Oyerinde said:  “Organized businesses are still faced with burdensome number of taxes.  The Finance Bill seeks to add additional burden on businesses. 

''It is worrisome that the Tertiary Education Tax, TET, was increased from two and half per cent to three per cent without regard for the current economic situation faced by businesses.”

Giving insight into what the group described as “legacy of taxes and levies” OPS noted that “organized businesses are currently burdened with over 50 taxes, levies and fees (both legally and illegally). 

''These taxes include Company Income Tax, CIT, Stamp Duties, Petroleum Profit Tax, Capital Gains Tax, Value Added Tax, Personal Income Tax, Withholding tax, Tertiary Education Tax, one percent  of payroll contribution to Nigeria Insurance Trustfund, NSITF.

''Others are 10 per cent of Payroll contribution to National Pension Commission, PenCom, one percent of payroll Industrial Training Fund, ITF Levy, National Information Development Levy, Cabotage Levy, Radio and TV Licenses, Police Special Trust Fund Tax Levy, Niger-Delta Development Commission Levy, and National Agency for Science and Engineering Infrastructure levy.

''Also included are the Land Use Charge, Parking Fee, Consumption Tax, Road Tax, Standard Organization of Nigeria Fees, Nigeria Content Development Levy, NAFDAC Levy, Nigeria Health Insurance Authority contribution, Signage Fees Etc. Increasing the Tertiary Education Tax is another burden too much.

“Increasing CIT, rate for a gas-flaring company from the standard 30 per cent to 50 per cent is also worrisome, considering the fact that these companies are already covered in the Petroleum Industry Act. 

''This could be a recipe for further divestment. Also, the imposition of excise duty at rates to be specified via Presidential Order on all services, including telecommunication services, is too broad and vague.   This could be subject to abuse and further strangulation of the business community.

 “It is absurd that the National Assembly would consider and pass the Finance Bill in an unusual manner. While the Senate ambushed stakeholders, inviting them for a public hearing in less than 24 hours, the House of Representatives scheduled its hearing for January, 2023. 

''It was surprising that the National Assembly would pass such important bill without the input and contributions of critical stakeholders. We urge the President to request the National Assembly to do the needful by taking into cognizance the concerns of organized business and expunge all anti-business provisions in the bill.”

Culled from Vanguard