TECHNOLOGY

NCC Regional Workshop Identifies Multiple Taxation As Barrier To Nigeria’s Economic Growth

Nigeria’s potential for substantial economic growth within the West African region is being stifled by the burden of multiple taxation, often labeled ‘nuisance taxes’ by the World Bank.

This was revealed by the Executive Commissioner for Stakeholder Management, of the Nigeria Communications Commission (NCC), Adeleke Adewolu.

Speaking at the Regional Stakeholders Workshop on Multiple Taxation and Regulations, Adewolu listed the detrimental impact of multiple taxation on the nation’s economic development.

Adewolu defined multiple taxation as “the imposition of the same or similar taxes on the same income base, transaction, or person by one or more levels of Government, in one or more jurisdictions.”

He went on to stress the paradox that excessive taxation doesn’t boost government revenue but, instead, turns profitable businesses unprofitable.

“The crippling effect of these taxes is that they make otherwise profitable businesses unprofitable,” Adewolu pointed out, highlighting the negative consequences of this economic hurdle.

The adverse effects of multiple taxation extend beyond the financial burden, as Adewolu added, “The administrative complexities of complying with these taxes discourage business growth and competitiveness.”

According to him, this not only impacts businesses but also the nation’s overall economic strength, devaluing its currency and contracting its GDP.

He said adhering to fundamental taxation principles is essential for a fair and efficient tax system.

“Taxation should seek to be neutral and equitable between forms of business activities,” Adewolu added.

These principles include neutrality, efficiency, certainty, fairness, and flexibility. He further added that tax systems must adapt to evolving economic landscapes while remaining fair and efficient.

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Adewolu also highlighted government initiatives to combat multiple taxation.

“The National Tax Policy 2017 is a significant step,” he said.

Additionally, he pointed out President Bola Tinubu’s commitment to addressing the issue through executive orders and the establishment of a committee on fiscal policy and tax reforms. These measures signify the government’s dedication to enhancing the tax system and fostering a conducive business environment.

Adewolu expressed optimism about the workshop’s potential to eliminate multiple taxes and create a business-friendly environment conducive to economic growth.

He urged both the public and private sectors to recognize taxation as a win-win solution for steering Nigeria’s national economy.

“This Workshop is an invitation to both the public and private sector to view taxation as a win-win solution in steering the course of our national economy,” he added.

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