The Coalition of Northern Groups (CNG) has called on the Acting Executive Chairman of Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, to revisit the issue of multiple taxation which it said has been a major challenge faced by businesses and taxpayers in the country.
The Spokesperson of the group, Abdul-Azeez Suleiman, in a statement issued Saturday, pointed out that the current system of multiple taxation in Nigeria places a heavy burden on businesses, particularly small and medium enterprises (SMEs).
He noted that this was because they are subjected to various forms of taxes, including corporate income tax, value-added tax, education tax, among others.
The group said: “It is in this light that we call on the FIRS ED to revisit the issue with a view to reviewing and easing the system to conform with international best practices.
“The current system of multiple taxation in Nigeria places a heavy burden on businesses, particularly small and medium enterprises (SMEs). This is because they are subjected to various forms of taxes, including corporate income tax, value-added tax, education tax, among others.”
“In addition, they are also required to pay taxes to local governments, which often have different tax regimes. This makes it very difficult for businesses to comply with tax regulations and imposes additional costs on them.”
The group noted that multiple taxation has been identified as a major deterrent to foreign investment in Nigeria.
It said this was because investors are wary of the multiple tax regimes and the high compliance costs associated with them.
The group, therefore, suggested the simplification of the tax system, saying the current tax system is complex and confusing.
It added: “There are too many taxes and levies, some of which are duplicative. To ease the system, there is a need to simplify the tax codes and eliminate duplicative taxes to make compliance easier for businesses,” he added.
The group who congratulated Adedeji on his appointment expressed confidence in the President Bola Tinubu’s choice, saying his contribution to Nigeria’s tax administration and revenue generation cannot be overstated.