Clearing agents at the nation’s seaports and the Nigeria Employers Consultative Association have criticized the Federal Government’s increase in corporate taxes, claiming that the situation will have a negative impact on the nation.Information Guide Nigeria
They have also anticipated that Nigeria’s illicit imports may increase as a result of the newly implemented tariffs on food and beverages.
👉 Relocate to Canada Today!
Live, Study and Work in Canada. No Payment is Required! Hurry Now click here to Apply >> Immigrate to CanadaThey contended that the tax would alter the price of the goods and make life harder for citizens.
The Tariff Technical Committee of the Federal Ministry of Finance has announced hefty tariffs on tobacco, wines, spirits, and non-alcoholic beverages with added sugar.
Other Top Stories:
- My fiancé’s sister and I did ‘runs’ together – Lady expresses fear as wedding draws closer
- Telcos, banks to collect VAT on taxable supplies
- Marketers say tough times as petrol hits N200/litre
- Gbajabiamila lists reasons FG won’t pay ASUU fully
In a recent engagement with stakeholders, the Director General of NECA, Mr. Wale Oyerinde, stated that the result of sharp hikes like the one being considered would be a significant loss of volumes to illicit players, which would ultimately have a negative impact on government revenues.
According to him, “Earlier this year, neighboring countries like Togo and Benin reversed their excise rates (ad valorem) from 150 percent & 100percent respectively to 50percent, so Nigeria could become a more attractive destination for illicit trade. In view of Nigeria’s border situation, limited resources for enforcement and related challenges, the Government does not have the tools nor resources to tackle illicit trade challenges.”
Also speaking, a member of the National Association of Government Approved Freight Forwarders, Nnadi Ugochukwu, said, “Of course, the cost of production influences the availability and induces alternative sourcing. So, if you put a tax on it, the cost of production will increase and it will now affect how available and affordable the goods will be to the people and people will start looking for alternative means which may be legal or illegal.”
