The Lagos Chamber of Commerce and Industry (LCCI) has cautioned the Federal Government on plans to raise some taxes as contained in the 2022 Finance Bill recently passed by the National Assembly, and currently awaiting the president’s assent.
The 2022 Finance Bill is initiated to facilitate the financing of the 2023 national budget.
In a statement over the weekend, the Director-General of LCCI, Dr Chinyere Almona, said the government should explore new ways to rescue tax expenditures to boost government revenue in 2023, rather than adding to the tax burden of businesses.
She stated that, “Rising from the interactions with our members and several stakeholders in the broader business community, has placed a responsibility on itself to share the concerns about the 2022 Finance Bill as approved by the National Assembly, and as it awaits the assent of the President.
“On the path of caution, we urge the government to thread conservatively in raising tax rates, since there are new ways of rescuing some tax expenditures to add up to government revenue in 2023. “Leaving rates at their levels will not lead to a loss of revenue," she added.
Almona further stated that, based on feedback from operators in the Oil & Gas sector and the wider business community, LCCI recommend the following:
“We suggest a retention of the Tertiary Education Tax (TET) rate at 2.5%, since it was just recently increased from 2% to 2.5%. At the proposed rate of 3% Nigeria’s corporate income tax rate would rise to about 36% which is one of the highest rates in the world, according to available research.
“Retain the 30% CIT for all oil and gas companies; and Consider amending the Petroleum Profit Tax Act with the same provision in the PIA section 104.”
On achieving revenue targets for the budget, LCCI suggests that Ministries, Departments and Agencies (MDAs) and Government Owned Enterprises (GOEs) can intensify their revenue mobilization efforts in an enabling environment where the private sector thrives. (Vanguard)
