The Nigerian Communications Commission (NCC) has declared that multiple taxation is an impediment to economic development in the country.
The commission made this declaration during a regional stakeholders workshop on multiple taxation and regulations in Ibadan, the Oyo State capital recently.
The workshop was attended by the Executive Commissioner (Stakeholder Management) of NCC, Mr Adeleke Adewolu, a law lecturer, Temidayo Ashonibare and various stakeholders among whom are representatives of state governments, experts and telecommunication companies.
Adewolu, while speaking on the theme, “Multiple taxation: An impediment to economic development”, explained that multiple taxation has continued to be a bane on economic development in the country.
He added that the aim of the workshop was to address the problem associated with multiple taxation and find a way to solve the problem.
He maintained that it is worthy of note to know that the National Tax Policy 2017 emphasizes the need to eradicate multiple taxation at all tiers of government.
He also added that the policy states that taxes similar to those being collected by a level of government should not be introduced by the same or another level of government.
Adewolu while speaking further said that the paradox of multiple taxation is that it negatively impacts the ease of doing business, shrinks the tax base, incentivizes tax evasion and complicates tax compliance.
He said, “Despite the prospect of accelerated economic growth, the presence of multiple taxation, which the World Bank has termed ‘nuisance taxes’ has and continues to prove to be a bane on economic development in the country.
“However, before addressing how multiple taxation is an impediment to economic development, it is important to emphasize that taxation, in and of itself, is a veritable tool for economic development.
“The curious question, which this workshop will attempt to answer, is how a fiscal tool for economic development like taxation can become inimical to economic development. It is imperative therefore to correct some misconceptions about taxation, particularly the misguided notion of taxation as a penal tool on thriving business enterprises.
Taxation is the backbone for public finance. It provides guaranteed and sustainable sources of funding for social programmes and public investments. It also serves as a tool curated by the government to effectively and efficiently distribute our commonwealth.
However, supporting the tax initiatives by the various tiers of Government includes indicating where a category of taxes have become cancerous to economic development.
“These type of taxes typically manifest themselves in the form of multiple taxation and by design, they reverse growth, stifle innovation and discourage investment. In parabolic terms, they are the scarecrows mounted by government to disincentivize development.
“The paradox of multiple taxation is that it does not lead to an increment in government revenue, rather the crippling effect of these taxes, are that it makes otherwise profitable businesses unprofitable. It negatively impacts the ease of doing business, shrinks the tax base, incentivizes tax evasion and complicate tax compliance”.
