Tax experts on Thursday frowned at multiplicity of taxation system of Nigeria, stressing that it acts as disincentives to both local and foreign investments.
They stated this at the 2020 annual symposium of Issuers & Investors Alternative Dispute Resolution Initiative (IIADRI) in Lagos with the theme Nigerian Tax Laws: Matters Arising.
The tax experts called on the Federal Government to address multiplicity of taxes inherent in the country to boost local and foreign investments.
Mrs Atinuke Agboluaje, International Tax Regualtory Deloitte Nigeria, said inappropriate taxation of tax payers deters local and foreign investments.
Agboluaje noted that there were about 55 taxes and levies being collected in the country by federal, state and local governments.
She said that multiplicity of taxes create uncertainties among investors thereby affecting investment.
“This is what investors don’t like, they can take risk but cannot withstand uncertainties.
“It makes them to be weary of coming into Nigeria and this is not good for our economy,” she stated.
This, according to her, causes a decline in the ease of doing business and should be addressed.
Agboluaje said that multiplicity in taxation creates room for unauthorised persons to get involved in the collection of taxes and levies.
She called on government to streamline the tax collection process to be more conducive and amicable.
Agboluaje also called for frequent review of the tax law, noting that 2019 Finance Act was in the right direction.
She spoke on the “Effects of multiple taxation and coercive enforcement procedures on companies: The way forward.”
Also speaking, Mr Ademola Idowu, Manager Tax, Regulatory & People Services, KPMG Nigeria, said tax polices must align with global best practices.
Idowu explained that government should pursue proper tax policies that would propel businesses and as well boost ease of doing business.
He said that businesses and individuals would be willing to pay taxes with provision of good infrastructure.
Idowu spoke on the topic: Tax as an instrument of Corporate growth and economic prosperity of a nation.”
In her good will message, Ms Mary Uduk, acting Director-General, the Securities and Exchange Commisison (SEC), said the changes in 2019 Finance Act were targeted at promoting fiscal equity.
Uduk said that the Act has reformed domestic tax laws to align with global best practices by introducing tax incentives for investments in infrastructure and capital markets.
She added that it supported micro, small and medium-sized businesses as well as raising revenues for the government.
Uduk, represented by Mrs Hafsat Rufai, Deputy Director SEC, Lagos Zonal Office, stated that the commission was working on guidelines to strengthen corporate governance of public companies.
She noted that SEC would remain committed to creating an environment that enables efficient capitalmformariin and investor protection.
Earlier, in his welcome address, Mr Moses Igbrude, Chairman IIADRI, said that the clinic was aimed at annually providing the needed platform where all stakeholders within the Nigerian investment space meet to express views.
Igbrude stated that the ultimate goal of the institution was to engender strong companies that would continually render returns on investments to all stakeholders to enhance growth and development.
He said the theme of the symposium was selected to address the numerous complaints raised by corporate organisations on the administration of taxes in Nigeria.
Igbrude added that a cooperative approach in tax administration in Nigeria would promote ease of doing business and enhance more robust economic growth and development.
