Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, joined by other stakeholders, advocated for tax holidays as a crucial measure for businesses operating in Nigeria during the third National Advertising Conference (NAC) in Abuja.
The stakeholders underscored the pressing need for the Federal Government to implement tax holidays as part of ongoing economic reforms, given the overwhelming tax burden faced by businesses. They highlighted the staggering number of over 200 different types of taxes in Nigeria, with 60 being officially recognized. This tax landscape, coupled with challenges such as deficient infrastructure, energy crises, and institutional corruption, poses significant hurdles to business prosperity.
Addressing the audience under the theme ‘Marketing Communication as an Enabler of National Transformation,’ Oyedele presented a paper titled ‘The Current Economic Reality in Nigeria and Imperatives of Reform.’ He emphasized the impossibility for businesses to thrive while fully complying with all laws and taxes in Nigeria, stating that such a scenario has been counterproductive in enhancing revenue.
Oyedele asserted that fewer taxes could yield higher revenue collections, drawing attention to the disillusionment among Nigerians regarding tax payment due to disappointment with their leaders. He referred to a tax study by the Nigerian Economic Summit Group (NESG) revealing that only 17% of adults believe in paying taxes, with 83% willing to evade taxes due to a lack of trust in the government, perceived complexities, and corruption in the taxation process.
Adding to the discourse, Dr. Tayo Adeyanju, Chief Executive Officer (designate) of NESG, questioned the sustainability of maintaining 200 types of taxes, suggesting that reducing the tax burden to single digits could yield substantial benefits. He proposed granting nano-enterprises a tax leave for several years, encouraging them to operate in Nigeria’s formal sector, ultimately fostering their growth and eventual transition into viable taxable entities.
The stakeholders collectively stressed the urgent need for tax reforms, highlighting the imperative of reducing the tax burden and simplifying the taxation process to bolster business viability and stimulate growth in Nigeria’s economy.
