PwC expert moans NASS is imposing NYSC tax on top of legions
By Jeph Ajobaju, Chief Copy Editor
A fiscal Policy Partner and Africa Tax Leader at PwC, Taiwo Oyedele, has called out the National Assembly (NASS) for its excessive tax on companies struggling to survive in a hostile business climate Abuja created simply to frustrate productivity.
“It seems @nassnigeria is bent on taxing businesses out of existence,” Oyedele said in a Twitter post lamenting the legion of taxes imposed on companies with Abuja merely collecting rent and doing little or nothing to facilitate business growth.
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He spoke out after the latest bill in the Senate seeking to establish a National Youth Service Corps (NYSC) Trust Fund.
“Yet another tax! This bill seeks to impose a levy of 1% of net profit on companies operating in Nigeria.
“Despite all evidence showing that more taxes will negatively impact the economy, it seems @nassnigeria is bent on taxing businesses out of existence,” he said.
“If assented to by @MBuhari, this will be in addition to at least 5 other taxes on the profits of companies in Nigeria: CIT, TET, NITDA, Police levy, NASENI and NYSC levy.”
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Oyedele urged lawmakers to incentivise business, saying “the right to do at this time is to harmonise taxes (not introduce new taxes), broaden the tax base and expand the tax net,” per reporting by Nairametrics.
“The number of income taxes alone introduced by 9th @nassnigeria is set to exceed the number of income taxes we had since independence notably: Police tax, NASENI levy, NYSC levy (not even the military imposed as many taxes). We will remember this legacy!”
“The 9th @nassnigeria will go down in history as the most insensitive to the plight of businesses regarding the multiplicity of taxes despite the difficult operating environment. We will remember this legacy!”
NYSC Trust Fund
The NYSC Trust Fund bill seeks to create sustainable sources of funds for the NYSC to provide corps members with skill acquisition training and startup capital.
The bill is crafted to be financed through
- 1 per cent levy on the net profit of companies and organised private sector operators.
- 0.2 per cent of total revenue accruing to the Federation Account.
- Any takeoff grant and special intervention fund provided by the three tiers of government.