The Center for the Promotion of Private Enterprise (CPPE) criticized the National Assembly for hastily approving the 2022 finance bill without the benefit of input from the citizens whom they were elected to represent.
CPPE Executive Director Dr. Muda Yusuf said: “The Center is concerned about the rushed passage of the Finance Bill 2022 by the National Assembly. Calls to question the role of representation of the Assembly. There was virtually no space for public hearing and stakeholder participation in the bill’s consideration.”
This is a great disappointment of the National Assembly in its representative role in our democracy. The action is not consistent with the ideals and principles of our democracy because sovereignty ultimately belongs to the people. What the National Assembly has done amounts to disrespect, contempt and contempt for the Nigerian people and the business community. The approved bill contained, among others, the following provisions: imposition of excise taxes on all services whose rates will be determined by presidential decree; imposition of a 0.5 percent duty on all eligible imports from non-African countries to finance Nigeria’s obligations to international organizations; an increase in the tertiary education tax from 2.5 percent to three percent of company profits”
Dr. Yusuf called on the president to withhold passage of the 2022 Finance Bill until the National Assembly properly engages stakeholders as required by legislative protocols.
Yusuf said this is legislation that has profound implications for investment, citizen welfare and the Nigerian economy, saying it is curious and perplexing that the Senate has given just 24 hours’ notice for interested parties to attend. to a public hearing on the bill.
According to him, “the public notice was published on December 21, 2022 for a public hearing scheduled for December 22, 2022. There is no better expression of deliberate exclusion of stakeholders from this important legislative process.
“The House of Representatives gave a more generous notice of about three weeks. But in a sudden and baffling turn of events, the House passed the bill before the announced public hearing date, which was January 13, 2023. The bill has since been sent to the president for his approval. This rush is incomprehensible.”
The executive director of the CPPE noted that “it is unfortunate that the National Assembly hastily approved the bill without the benefit of input from the citizens whom they were elected to represent.
“This is a great disappointment of the National Assembly in its representative role in our democracy. The action is not consistent with the ideals and principles of our democracy because sovereignty ultimately belongs to the people.”
He explained that the approved bill contained, among others, the following provisions: imposition of special taxes on all services whose rates will be determined by presidential order; imposition of a 0.5 percent duty on all eligible imports from non-African countries to finance Nigeria’s obligations to international organizations; and an increase in the Tertiary Education Tax from 2.5 percent to three percent of the company’s profits.
He stressed that all this has far-reaching implications for investors and citizens, explaining that it will affect the cost of production and affect the operating cost and undermine investor confidence.
He also said it has deep inflationary implications, saying it will effectively move the corporate tax to nearly 35 percent, which is one of the highest globally.
He called on President Mohammadu Buhari not to leave a legacy of unbearable tax burden for investors in the Nigerian economy, adding that the torrent of taxes, levies and fees is crippling business.
