Concerns are raised by the private sector over the government’s goal of N2.43 trillion in non-oil income.
The federal government’s contentious Finance Bill 2022, which intends to tax companies even more, has caused concern in the private sector.
The measure was swiftly approved by the National Assembly together with the 2023 Appropriation Bill without a public hearing, a decision that the organized business sector is currently contesting (OPS).
The 2023 Appropriations Act states that N10.49 trillion in total revenues are expected to be available to fulfill the budget. And this includes the N3.87 trillion in gross sales from 63 government-owned businesses.
It is anticipated that the Federal Government would get N2.29 trillion from oil income, N2.43 trillion from non-oil taxes, and N2.6 trillion from independent sources.
The House of Representatives enacted the piece of legislation before the Senate’s 24-hour public hearing notice deadline, which several OPS advocacy organizations criticized as being impractical.
The OPS, which is requesting a comprehensive assessment of the document, would reject it, according to unaffiliated sources who spoke with The Guardian, if enacted as intended by the MPs.
Members of the private sector are concerned that higher taxes would simply drive businesses closer to breaking point.
According to Zainab Ahmed, Minister of Finance, Budget, and National Planning, the document, which is being reviewed, would compel extensive changes to the tax code and improve the ease of doing business.
However, stakeholders in the sector said that several of the rules would weaken companies, raise the cost of various taxes, and make the operating climate less hospitable to private investment.
In order to pay for Nigeria’s responsibilities to international organizations, the finance bill proposes levying a 0.5% tax on all qualified imports from non-African nations as well as raising the tertiary education tax from 2.5% to 3% of corporate earnings.
Economists have criticized these because they think the increased taxes will have significant effects on residents and investors, raising production costs and eroding investor confidence. They worry that the levies would have worsening inflationary effects.
