Multiple taxes will prevent economic growth, says NCC

Multiple levies, according to the Nigerian Communications Commission (NCC), are a barrier to the nation’s economic growth.

The commission made this announcement on Wednesday in Ibadan, the capital of Oyo State, at a regional stakeholders workshop on several taxes and regulations.

A number of stakeholders, including representatives of state governments, experts, and telecommunication companies, as well as the Executive Commissioner (Stakeholder Management) of the NCC, Mr. Adeleke Adewolu, Executive Secretary of the Association of Licenced Telephone Operators of Nigeria (ALTON), Mr. Gbolahan Awonuga, a law lecturer, and Mr. Temidayo Ashonibare, were present at the event.

Speaking on the topic of “Multiple Taxation: An Impediment to Economic Development,” Adewolu said that the country’s economic development has been hampered by multiple taxes.

He continued by saying that the workshop’s goal was to examine the issue of multiple taxation and find a solution.

The National Tax Policy 2017 underlines the need to eliminate various taxes at all levels of government, he claimed, thus it is noteworthy to know that.

The policy, he continued, prohibits the introduction of taxes by the same level of government or any other level of government that are similar to those being collected by one level of government.

Adewolu continued by stating that the paradox of multiple taxing is that it has a detrimental effect on the ease of conducting business, reduces the tax base, encourages tax evasion, and makes tax compliance more difficult.

The World Bank has referred to various taxes as “nuisance taxes,” and they have proven to be a hindrance to the country’s economic progress despite the possibility of quicker economic growth, he said.

“However, it is vital to underline that taxation, in and of itself, is a veritable tool for economic progress before discussing how double taxation is a hindrance to it.

How a fiscal tool for economic development, like taxation, can turn against economic progress is a puzzling subject that this workshop will try to address. Therefore, it is essential to dispel some myths regarding taxes, especially the fallacious idea that taxes serve as a punitive measure against successful commercial firms.

“It is clear from this that taxation is essential for ensuring sustainable and equitable growth. As a result, taxation is intended to be a tool for economic development, and it is crucial to recognise and support any government effort that uses taxation as a tool for socioeconomic development.

The National Tax Policy 2017 places a strong focus on the need to eliminate multiple taxes at all levels of government, which is important to notice. The policy specifically stipulates that the same level of government or another level of government should not enact taxes that are comparable to those that are already being collected. The federal, state, and municipal governments must work together to harmonise and get rid of numerous taxes.

The paradox of many taxes is that they don’t increase government revenue; rather, they have the devastating effect of driving away customers from otherwise prosperous firms. It makes doing business more difficult, reduces the tax base, encourages tax evasion, and makes tax compliance more challenging.