The Abuja Chamber of Commerce and Industry (ACCI), has advised the federal government to broaden the tax base and reduce tax rates to further ease doing business in the country.
According to the chamber, the increasing level of inflation, high taxes, and high-interest rates contribute to increasing the cost of production which has resulted in many businesses not breaking even and other closing shop.
ACCI president, Dr. Al-Mujtaba Abubakar, who stated this in his New Year message said the situation is further complicated by insecurity challenges and the exchange rate instability.
He tasked the federal government to intensify efforts towards addressing the persistent insecurity which had significantly affected the country’s ease of doing business evaluation and also called on the government to fulfil its promises to among other things re-energise and re-organise the security apparatus to bring the situation under control.
Abubakar further noted that high taxation remains counterproductive to the economy, killing many businesses and deepening the unemployment crisis, and, therefore, recommended easing the harsh business environment by transforming regulatory agencies into facilitating bodies.
Abubakar, pointed out that though there had been several interventions of the government to enhance and boost economic opportunities. “We also note the constraints confronting the government in the area of low revenue and mounting expenditure.”
He stated that the government, in a drive to generate funds at all cost, had subjected businesses to more than five levels of taxation in Abuja.
“This needs to change so that SMEs can thrive and employ more workers to ease the increasing level of unemployment. The chamber believes that the economy grows and GDP multiplies when government’s policies, agencies, and programmes facilitate rather than impede businesses,” he added.
According to him, with carefully formulated tools and well-advanced preparation, the toughest challenges could be turned into opportunities, even as he urged the government to intensify its efforts in providing the technology and digital infrastructure needed for new business techniques in line with current realities.
