The Center for the Promotion of Private Enterprise, CPPE, has said that the recently passed Finance Bill 2022 would worsen Nigeria’s inflation and increase corporate tax to almost 35 percent.
DAILY POST reports that this was contained in a statement by CPPE director Dr. Muda Yusuf on Sunday.
According to the statement, the group criticized the hasty passage of the 2022 Finance Law without proper consultation by private sector stakeholders.
He explained that the Finance Act, once passed by President Muhammadu Buhari, would have far-reaching implications for businesses in Nigeria.
The Finance Law of 2022 includes the imposition of excise taxes on all services with rates to be determined by presidential order and; Imposing a 0.5% tax on all eligible imports from non-African countries to finance Nigeria’s obligations to international organizations, a tertiary education tax increases from 2.5% to 3% of company profits.
He stated that there are enough tax burdens on corporate entities in Nigeria, hence the risk of another doom spell being imposed on Nigerian companies.
“Already 133 million citizens are in extreme poverty. These measures would further impoverish citizens, since they bear these additional taxes.
“We call on President Buhari not to leave a legacy of unbearable tax burden for investors in the Nigerian economy. The torrent of taxes, levies and fees is crippling businesses.
“We submit that the president should withhold consent on the 2022 Finance Bill until the National Assembly properly engages stakeholders as required by legislative protocols,” he stated.
The National Assembly passed the Finance Law on December 28 and forwarded it to Buhari for approval.