Duplication of tax will strangulate businesses

The Nigeria Employers’ Consultative Association (NECA), on Monday expressed concerns over the duplication of tax and levies imposed on businesses in some states.

Mr Olusegun Oshinowo, Director General of NECA said at a forum in Lagos, that multiple and duplication of taxes and levies, was an attempt by any government to strangulate businesses.

Oshinowo also raised concern with particular reference to the enactment of the Kano State Revenue Administration (Amendment) Law 2017, which imposed a Consumption tax payable by consumers.

He said that the law affects consumers of goods and services bought or rendered in any hotel, restaurant, eatery, bakery, takeaway, suya spot, shopping mall, store, event centre and other similar businesses in the state.

”The imposition of Consumption Tax by Kano State amounted to a duplication of Value Added Tax (VAT), which our laws frown against."

”The law is against it as stated by the Supreme Court in the case of Attorney General of Ogun State vs. Aberuagba and Ors.'

”We do not agree with the imposition of such tax due to the existence of Value Added Tax (VAT) in the country,” the director general said.

He explained further that VAT was a consumption tax collectible by the Federal Government (and shared among the states) in respect of sale of goods and provision of services within the Federation.

Oshinowo said that NECA had instituted an action challenging such imposition by the State Government.