PwC Chief: Nigeria is a High-Tax Nation
The Advisory Partner and Chief Economist at PwC Nigeria, Mr Andrew Nevin, has described Nigeria as a high-tax country because of the number of taxes organisations and individuals are made to pay to the government.
The federal government had always argued that Nigeria was a low-tax nation, stressing that the 7.5 per cent value-added tax charged in the country was one of the lowest in the world.
But Mr Nevin disagrees, noting that citizens, after paying different taxes, are made to pay again for security, electricity and others.
“Some believe Nigeria is a low-tax country, [this is] completely inaccurate [as] Nigeria is [a] high-tax country.
“You pay taxes. Then pay again for education, health, infrastructure, security (and) power,” the co-creator of the Self-Organising Naija concept and founding governor of the Financial Centre for Sustainability (FC4S) stated.
The PwC chief was reacting to a news report quoting the Director-General of the Nigeria Employers’ Consultative Association (NECA), Mr Adewale Oyerinde, as saying that Nigerian businesses are burdened with more than 50 different taxes.
Mr Oyerinde said this in reaction to the 2020 finance bill, which is yet to the signed into law by President Muhammadu Buhari, expressing worry that this would put more pressure on businesses in the country.
“These taxes include company income tax; stamp duties; petroleum profit tax; capital gains tax, value added tax; personal income tax; withholding tax; tertiary education tax, among others.
“Increasing the Tertiary Education Tax is another burden too much.
“Also, increasing the CIT rate for a gas-flaring company from the standard 30 per cent to 50 per cent is also worrisome, considering that these companies are already covered in the Petroleum Industry Act, this can 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 can be subject to abuse and further strangulation of the business community,” he said.
Source: businesspost
