The Nigerian Communications Commission (NCC) has declared that multiple taxes are an impediment to economic development in the country.
The commission made this declaration during a regional stakeholders workshop on multiple taxation and regulations in Ibadan, the Oyo State capital, on Wednesday.
The event was attended by the Executive Commissioner (Stakeholder Management) of NCC, Mr. Adeleke Adewolu; Executive Secretary, of the Association of Licensed Telephone Operators of Nigeria (ALTON), Mr. Gbolahan Awonuga; a law lecturer, Mr. Temidayo Ashonibare; and various stakeholders, among whom are representatives of state governments, experts, and telecommunication companies.
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Adewolu, while speaking on the theme “Multiple Taxation: An Impediment to Economic Development,” explained that multiple taxation has continued to prove to be a bane to economic development in the country.
He added that the aim of the workshop was to address the problem associated with multiple taxation and find a way to solve it.
He maintained that it is worthy of note to know that the National Tax Policy 2017 emphasizes the need to eradicate multiple taxes at all tiers of government.
He also added that 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.
Adewolu, while speaking further, said that the paradox of multiple taxation is that it negatively impacts the ease of doing business, shrinks the tax base, incentivizes tax evasion, and complicates tax compliance.
He said: “Despite the prospect of accelerated economic growth, the presence of multiple taxation, which the World Bank has termed ‘nuisance taxes’ has and continues to prove to be a bane on economic development in the country.
“However, before addressing how multiple taxation is an impediment to economic development, it is important to emphasize that taxation, in and of itself, is a veritable tool for economic development.
“The curious question, which this workshop will attempt to answer, is how a fiscal tool for economic development, like taxation, can become inimical to economic development. It is imperative, therefore, to correct some misconceptions about taxation, particularly the misguided notion of taxation as a penal tool against thriving business enterprises.
“It is thus evident that taxation is critical for making growth sustainable and equitable. Thus, taxation by design is an instrument for economic development, and it is important to acknowledge and support the initiative of all tiers of Government in using taxation as an instrument for socio-economic development.
“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 taxations.”
“The paradox of multiple taxation is that it does not lead to an increment in government revenue, rather, the crippling effect of these taxes is that it makes otherwise profitable businesses unprofitable. It negatively impacts the ease of doing business, shrinks the tax base, incentivizes tax evasion, and complicates tax compliance.”
