CEM REPORT, ECONOMY | The Federal Government’s recently approved policy has instigated several reactions from different sections of the country.
Recent in its reaction to the policy is the Nigerian Employees Consultative Association (NECA) who has warned that implementation of the policy will further aggravate the current rate of unemployment in the country.
The professional body added that the nation’s business climate is not prepared for such an increase.
Reacting to the increase in a statement, the Director-General of NECA, Adewale-Smatt Oyerinde, stated that the increase in taxes is counter-productive adding that it will encourage smuggling and discourage Foreign Direct Investment (FDI).
“The Roadmap as previously agreed on Excise should be adhered to, in the spirit of policy consistency.
“The increases, if implemented, will be counter-productive as it will aggravate the current rate of unemployment, encourage smuggling and discourage Foreign Direct Investment (FDI).
“It will also reduce the purchasing power of Nigerians and actively promote the relocation of businesses to other countries (Corporate-Japa).
“With the multi-dimensional challenges currently faced by organised businesses, a gift that Nigerians do not want is an increase in taxes.”
The body noted that the Nigerian business ecosystem is already overburdened with over 60 different taxes, levies and fees paid by businesses annually.
NECA appealed to the government to suspend the increase in Excise Duty and the introduction of new taxes and levies across the board.
CEM recently reported on the reaction of the Centre for the Promotion of Private Enterprise (CPPE) to the policy.
The Centre warned that the policy will further encourage smuggling and affect government revenue channels.
Muda Yusuf, Director of CPPE in a statement said the government should seek fiscal measures that balance the government plans of revenue generation while boosting domestic production, enhancing the welfare of citizens, promoting economic growth, deepening economic inclusion, facilitating job creation and recognizing societal ethos, beliefs and values.