Latest hikes in levies, taxes bad for businesses — ACCI

The Abuja Chamber of Commerce and Industry (ACCI) has said that any increase in levies and tax in a period of near recession is bad for businesses and the economy. Citing an example with the recent increase of Value Added Tax (VAT) rate from 5 per cent to 7.5 percent, the Director of the Chamber’s […]

The Abuja Chamber of Commerce and Industry (ACCI) has said that any increase in levies and tax in a period of near recession is bad for businesses and the economy.

Citing an example with the recent increase of Value Added Tax (VAT) rate from 5 per cent to 7.5 percent, the Director of the Chamber’s Policy Centre, Olawale Rasheed, told Daily Trust that the development had been creating ripples within the business sector.

Rasheed said the government had attempted to segment the application of the new VAT rate but that has not assuaged the fears of the private sector, stressing that if anything, tax break is what is needed to jump-start Nigeria’s sluggishly growing economy like that of Nigeria.

“Despite spirited efforts of government to introduce exemption list among others, preponderance of opinion is that the new VAT is ill-timed and capable of further compounding the slow growth and recovery of the economy,” he said.

He disclosed that the ACCI would be engaging the Federal Government through a Roundtable session soon, especially on the exemption list.

The industrialist said since the Finance Bill was signed into law, the window opened to the Organised Private Sector (OPS) is to seek the widening of the exemption list to cushion the effect on small businesses.

“Our members who are mostly small business operators are not comfortable with the VAT increment,” he said.