Multiple Tax Crippling Business – NECA
Nigeria Employers’ Consultative Association, NECA, yesterday, has cried out over the negative effect of multiple consumption taxes Imposed on business organisations by both the federal and state governments.
Mr Olusegun Oshinowo, NECA’s Director-General, complained that the federal government tagged it as Value Added Tax, VAT, while the state governments tagged it as dubbed consumption tax, which according to him are the same.
Speaking in an event held recently at Lagos, Oshinowo, opined that “The imposition of Consumption Tax by Kano State amounted to a duplication of Value Added Tax, VAT, which our laws frown against, as stated by the Supreme Court in the case of Attorney General of Ogun State vs. Aberuagba and Others”.
‘’We do not agree with the imposition of such tax due to the existence of Value Added Tax, VAT, in the country. This is because VAT is a consumption tax collectable by the Federal Government (and shared among the states) in respect of sales of goods and provision of services within the Federation”.
The Director general expressed deep concern as he claimed that the imposition on of the multiple tax is crippling the business atmosphere in the country and as such government should find a lasting solution to the situation.