Multiple taxation from government agencies is forcing indigenous investors to resort to importation.
This is the position of the Chairman, Chartered Institute of Taxation of Nigeria (CITN) Abuja chapter, Kennedy Iwundu.
He stated this on Thursday at the CITN Week in Abuja with the theme: “Tax Reforms Digitalisation and Its Impact on Doing Business In Nigeria.”
Iwundu said some investors had decided to import instead of setting up companies for production because of multiple taxation.
He said as tax professionals, there was need to discuss the current tax system and proffer solutions which should be forwarded for tax law reforms.
A situation where the Federal, State and Local Government Areas each have a long list of taxes and levies to collect is inimical to business growth, he said.
Iwundu further said such multiple taxation usually discourages both foreign and local investments coming into the Nigerian economy.
He said the current tax system which had multiple Federal taxes such as company income tax, levy on profit of companies apart from other sectorial collections posed serious problem to investors.
He, therefore, commended President Bola Tinubu for suspending the telecom tax and green tax, and setting up a committee to look into tax reforms so as to ensure that multiple taxation is eliminated.
The CITN chairman said the move would also ensure that tax laws and administration conformed with Nigeria’s tax policy.
He said the Nigeria tax collection had become a crucial policy of the government impact of tax reforms and digitalisation on government income in Nigeria, describing it as great and positive one.
“In 2022, the Federal Inland Revenue Service(FIRS) generated N10.1 Trillion revenue which has been recorded as highest in the history of the country.
“This is attributed to the impact of tax reforms and tax digitalisation. One of the reforms and digitalisation initiative is the introduction of administrative automation system by FIRS called Amanda.”
