NECA secures landmark judgment against Kano consumption tax

Posted by News Express | 26 July 2018 | 791 times

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•Mr. Olusegun Oshinowo, Director-General of NECA

The Nigeria Employers’ Consultative Association (NECA) has secured a landmark judgment at the Federal High Court against the Kano State Revenue Administration (Amendment) Law, 2017.

The Court in its ruling invalidated the Consumption Tax provisions of the Kano State Revenue Administration (Amendment) Law, 2017.

Speaking in Lagos, Mr. Olusegun Oshinowo, the Director-General of NECA remarked that: “The legal action became necessary due to the fact that the Kano State Government through its Kano State Revenue Administration (Amendment) Law 2017 had introduced and imposed a Consumption tax.

“The tax was payable by consumers of goods and services bought or rendered in any hotel, restaurant, eatery, bakery, suya spot, shopping mall, store, event centre and other similar businesses in the State.”

Oshinowo particularly deplored a situation where businesses are exposed to double or multiple taxations.

He noted that “at the last count, businesses in Nigeria are encumbered with the payment of over 55 different taxes at the three levels of government. The incidence of double taxation, particularly consumption tax, has assumed a very dangerous dimension, which we expect the Federal Government to rein in through an appropriate statutory or policy declaration.”

The association expressed its confidence in the rule of law in Nigeria thus its recourse to the judiciary for relief in the face of illegality foisted upon its members.

NECA urged other State Governments to operate within the ambit of the law, noting that government should not burden businesses with taxes, rather it should create an enabling environment for businesses to thrive and continue to contribute to the growth of the nation.

Culled from Daily Independent 

Source: News Express

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