The Centre for the Promotion of Private Enterprise, CPPE, has said the recently passed Finance Bill 2022 would worsen Nigeria’s inflation and increase Corporate tax to almost 35 per cent.
It was reported that this was contained in a statement by CPPE’s Director, Dr Muda Yusuf, on Sunday.
According to the statement, the group faulted the hasty passage of the Finance Act 2022 without due consultation by stakeholders in the private sector.
It explained that the Finance Act, when assented to by President Muhammadu Buhari, would have far-reaching implications for businesses in Nigeria.
The Finance Act 2022 includes the imposition of excise duties on all services with rates to be determined by presidential order and; Imposition of a 0.5% tax on all eligible imports from non-African countries to fund Nigeria’s obligations to international organizations, a Tertiary education Tax increases from 2.5% to 3% of company profits.
It stated that there are enough tax burdens on corporate bodies in Nigeria, hence the risk of imposition of another spell of doom for Nigerian businesses.
“Already 133 million citizens are in extreme poverty. These measures would further impoverish the citizens as they bear these additional taxes.
“We appeal to President Buhari not to leave a legacy of the unbearable tax burden for investors in the Nigerian economy. The torrent of taxes, levies, and fees is crippling businesses.
“We submit that the President should withhold consent on the 2022 Finance Bill until the National Assembly properly engages stakeholders as legislative protocols require,” it stated.
The National Assembly passed the Finance Act on 28th December and transmitted it to Buhari for assent.