Employers warn govts against multiple taxes

By Gloria Ehiaghe

The Nigeria Employers’ Consultative Association (NECA) has urged state governments to operate within the ambit of the law by creating an enabling environment for businesses to thrive and continue to contribute to the growth of the nation.

The Director General of NECA, Olusegun Oshinowo, who disclosed that businesses in Nigeria are encumbered with the payment of over 55 different taxes at the three levels of government, said the incidence of double taxes, particularly consumption tax, has assumed a very dangerous dimension.
He also disclosed that NECA has secured a landmark judgment at the Federal High Court against the Kano State Revenue Administration (Amendment) Law, 2017.

He said the Court in its ruling invalidated the Consumption Tax provisions of the Kano State Revenue Administration (Amendment) Law, 2017.
Oshinowo remarked that the legal action became necessary due to the fact that the Government through its Kano State Revenue Administration (Amendment) Law 2017 had introduced and imposed a consumption tax.
According to him, the tax was payable by consumers of goods and services bought or rendered in any hotel, restaurant, eatery, bakery, suya spot, shopping mall, store, event centre and other similar businesses in the state.
But he pointed out this amounts to a tax on the same goods and services, to which the provisions of the Value Added Tax Act, already applied.
Oshinowo in a statement said: “The Court determined all the questions in favour of NECA and granted the reliefs sought.
The Court set aside the provisions of the Kano State Revenue Administration (Amendment) Law 2017, as it amounted to the duplication of the Value Added Tax.
“The court further restrained the Government of Kano State and the Kano State Inland Revenue Service from implementing the provisions of the Kano State Revenue Administration (Amendment) Law 2017.