Executive Commissioner of the Nigerian Communications Commission (NCC), Mr. Adeleke Adewolu has urged states re-strategise on their taxation models especially when it results in multiple taxation of businesses.
Speaking on the topic, Multiple Taxation: An Impediment To Economic Development at the regional stakeholders workshop on multiple taxation and regulation for the South West geo-political zone held at Ibadan, Oyo State, Adewolu stated that multiple taxation has proven to be detrimental to economic growth.
“Despite the prospect of accelerated economic growth, the presence of multiple taxation, which the World Bank has termed ‘nuisance taxes’[1] has and continues to prove to be a bane on economic development in the country”, he said.
Adewolu who explained how a fiscal tool for economic development like taxation if not properly managed can become inimical to economic development, also stressed the need for the Federal, State and Local Governments to collaborate on harmonising and eliminating multiple taxation.
He called on all stakeholders to rethink the approach towards taxation by adhering to its founding principles. These principles include, neutrality, efficiency, Certainty and simplicity, effectiveness and fairness, flexibility:
He said: It is pertinent to note that the National Tax Policy 2017 emphasizes the need to eradicate multiple taxation at all tiers of government. Specifically, the Policy states that taxes similar to those being collected by a level of Government should not be introduced by the same or another level of Government. The Federal, State and Local Governments shall ensure collaboration in harmonizing and eliminating multiple taxation
“Also, the President and Commander-in-Chief of the Federal Republic of Nigeria, His Excellency, President Bola Ahmed Tinubu, in his commitment to address the vexed issue of multiple taxation, recently signed a number of Executive Orders to curb arbitrary taxes in the Country. Also, the inauguration of the Committee on Fiscal Policy, Tax Reforms by the President, which is geared towards harmonizing taxes will provide an avenue to further engage various stakeholders in order to identify their pain points and critical concerns bothering tax and fiscal policies. This would also facilitate a conducive environment for conducive for local and foreign investment into the country”.
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