The Nigerian Communications Commission has disclosed that despite the prospect of accelerated economic growth, multiple taxation has continued to cause setbacks for economic development in the country.
The commission disclosed this during a regional stakeholders workshop on multiple taxation and regulations in Ibadan, the Oyo State capital, on Wednesday, with the theme, ‘Multiple Taxation: An Impediment to Economic Development.’
Dignitaries at the event include the Executive Commissioner, Stakeholder Management of NCC, Mr Adeleke Adewolu; Executive Secretary, Association of Licensed Telephone Operators of Nigeria, Mr Gbolahan Awonuga; a law lecturer, Mr Temidayo Ashonibare; and various stakeholders, among whom are representatives of state governments, experts, and telecommunication companies.
Speaking on the theme, Adewolu explained that multiple taxation has continued to impede economic development in the country, adding that the aim of the workshop was to address the problem associated with multiple taxation and find a way to address it.
He stressed that it is worthy of note to know that the National Tax Policy 2017 emphasises the need to eradicate multiple taxes at all tiers of government.
He also disclosed 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 further stated 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 emphasise 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 emphasises 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 harmonising and eliminating multiple taxation.”
“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.”
