CPPE tackles NASS over finance bill
The Centre for the Promotion of Private Enterprise (CPPE) on Sunday expressed concerns over the passage of the 2022 Finance Bill by the National Assembly.
A statement by Muda Yusuf, director of the think tank, said the “hasty passage” of the bill calls to question the representation role of the National Assembly, adding that there was no room for public hearing and engagement with stakeholders in the consideration of the bill.
On Wednesday, the National Assembly passed the Finance Bill, a legislation that proposes key reforms to specific taxation, customs, excise and fiscal laws.
The bill amends several laws including the Capital Gains Tax Act, Companies Income Tax Act, Personal Income Tax Act, Petroleum Profits Tax Act, as well as Stamp Duties Act, Value Added Tax, and Public Procurement Act.
The CPPE said that the legislation has profound implications for investment, citizens welfare and the Nigeria economy. The organisation argued, however, that it is curious and puzzling that the senate gave just 24 hours’ notice for stakeholders to attend a public hearing on the bill.
“The public notice was published on 21st December 2022 for a public hearing scheduled for 22nd December 2022. There is no better expression of deliberate exclusion of stakeholders from this important legislative process,” the statement said.
“The House of Representatives gave a more generous notice of about three weeks. But in a sudden and baffling twist of events, the House passed the bill before the date of the advertised public hearing which was 13th January 2023. The bill has since been forwarded to the President for assent. This haste is incomprehensible.”
‘Regrettable Move’
The statement said that it is regrettable that the National Assembly hurriedly passed the bill without the benefit of input from citizens whom they were elected to represent.
“This is a major letdown by the National Assembly in its representation role in our democracy,” the statement said.
“The action is not consistent with the ideals and principles of our democracy because sovereignty belongs ultimately to the people.
“What the National Assembly has done is tantamount to disrespect, disregard and contempt of the Nigerian people and the business community.”
The CPPE said that the bill contains items detailing imposition of excise duties on all services with rates to be determined by a presidential order; imposition of 0.5% tax on all eligible imports from non-African countries to fund Nigeria obligations to international organizations; an increase in Tertiary Education Tax from 2.5% to 3% of company profit, among others.
“All of these have far-reaching implications for investors and citizens,” the think tank said.
“It will affect the cost of production; it will affect operating cost and would undermine investors’ confidence. It has profound inflationary implications. It will effectively move corporate tax to almost 35% which is one of the highest globally.
ALSO READ: Nigerian govt generates N625 billion VAT in Q3 2022 – NBS
“Currently, corporate tax is 30%; there is tertiary education tax of 2.5%; NITDA tax of 1%; NASENI Levy of 0.25%; Police Trust Fund tax 0.005%. Meanwhile, the National Assembly has already passed a bill imposing 1% tax for NYSC fund [awaiting the assent of the president] and another 1% Tertiary Health Levy is being planned.”
In the meantime, the statement said, investors are grappling with macroeconomic headwinds including depreciating exchange rate, illiquidity in the official forex window, spiking energy cost, weak purchasing power, rising interest rate and surging inflation.
Meanwhile, it added, companies currently pay multitude of taxes, fees, levies to state governments, local governments and regulatory agencies.
“This is not the way to promote economic recovery, job creation and poverty alleviation,” the CPPE noted.
“Already 133 million citizens are in extreme poverty. These measures would further impoverish the citizens as these additional taxes would be ultimately borne by them.
“We appeal to President Buhari not to leave a legacy of unbearable tax burden for investors in the Nigerian economy. The torrent of taxes, levies, fees is crippling business.
“We submit that the President should withhold assent on the 2022 Finance Bill until the National Assembly properly engages stakeholders as required by legislative protocols.”
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The Centre for the Promotion of Private Enterprise (CPPE) on Sunday expressed concerns over the passage of the 2022 Finance Bill by the National Assembly.
A statement by Muda Yusuf, director of the think tank, said the “hasty passage” of the bill calls to question the representation role of the National Assembly, adding that there was no room for public hearing and engagement with stakeholders in the consideration of the bill.
On Wednesday, the National Assembly passed the Finance Bill, a legislation that proposes key reforms to specific taxation, customs, excise and fiscal laws.
The bill amends several laws including the Capital Gains Tax Act, Companies Income Tax Act, Personal Income Tax Act, Petroleum Profits Tax Act, as well as Stamp Duties Act, Value Added Tax, and Public Procurement Act.
The CPPE said that the legislation has profound implications for investment, citizens welfare and the Nigeria economy. The organisation argued, however, that it is curious and puzzling that the senate gave just 24 hours’ notice for stakeholders to attend a public hearing on the bill.
“The public notice was published on 21st December 2022 for a public hearing scheduled for 22nd December 2022. There is no better expression of deliberate exclusion of stakeholders from this important legislative process,” the statement said.
“The House of Representatives gave a more generous notice of about three weeks. But in a sudden and baffling twist of events, the House passed the bill before the date of the advertised public hearing which was 13th January 2023. The bill has since been forwarded to the President for assent. This haste is incomprehensible.”
‘Regrettable Move’
The statement said that it is regrettable that the National Assembly hurriedly passed the bill without the benefit of input from citizens whom they were elected to represent.
“This is a major letdown by the National Assembly in its representation role in our democracy,” the statement said.
“The action is not consistent with the ideals and principles of our democracy because sovereignty belongs ultimately to the people.
“What the National Assembly has done is tantamount to disrespect, disregard and contempt of the Nigerian people and the business community.”
The CPPE said that the bill contains items detailing imposition of excise duties on all services with rates to be determined by a presidential order; imposition of 0.5% tax on all eligible imports from non-African countries to fund Nigeria obligations to international organizations; an increase in Tertiary Education Tax from 2.5% to 3% of company profit, among others.
“All of these have far-reaching implications for investors and citizens,” the think tank said.
“It will affect the cost of production; it will affect operating cost and would undermine investors’ confidence. It has profound inflationary implications. It will effectively move corporate tax to almost 35% which is one of the highest globally.
ALSO READ: Nigerian govt generates N625 billion VAT in Q3 2022 – NBS
“Currently, corporate tax is 30%; there is tertiary education tax of 2.5%; NITDA tax of 1%; NASENI Levy of 0.25%; Police Trust Fund tax 0.005%. Meanwhile, the National Assembly has already passed a bill imposing 1% tax for NYSC fund [awaiting the assent of the president] and another 1% Tertiary Health Levy is being planned.”
In the meantime, the statement said, investors are grappling with macroeconomic headwinds including depreciating exchange rate, illiquidity in the official forex window, spiking energy cost, weak purchasing power, rising interest rate and surging inflation.
Meanwhile, it added, companies currently pay multitude of taxes, fees, levies to state governments, local governments and regulatory agencies.
“This is not the way to promote economic recovery, job creation and poverty alleviation,” the CPPE noted.
“Already 133 million citizens are in extreme poverty. These measures would further impoverish the citizens as these additional taxes would be ultimately borne by them.
“We appeal to President Buhari not to leave a legacy of unbearable tax burden for investors in the Nigerian economy. The torrent of taxes, levies, fees is crippling business.
“We submit that the President should withhold assent on the 2022 Finance Bill until the National Assembly properly engages stakeholders as required by legislative protocols.”
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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