‘Tax hike will bring more suffering’

The Nigeria Employers’ Consultative Association (NECA) has cautioned that any attempt by the Federal Government to increase taxes will lead to negative impacts on households, individuals, and businesses.

This was disclosed in a statement by NECA’s Director-General Adewale-Smatt Oyerinde yesterday.

Oyerinde said such move would only lead to disaster for an economy struggling to stay afloat.

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THE NATION reports that it Oyerinde was reacting to a recent recommendation by the International Monetary Fund (IMF).Information Guide Nigeria

The government increase taxes in order to reduce borrowing. The IMF advised the government to reduce its debt by focusing on increasing the tax basket as a means of generating revenue to cut borrowing.NYSC Portal

THE NATION reports that Oyerinde said: “For a private sector already overwhelmed by multiple taxes, the imposition of additional taxes on services will make the business community more vulnerable with a trade off on growth and job creation.

“More taxes, of course, will weaken the purchasing power of individuals and stifle consumption, with attendant consequences for social cohesion. It may defeat any attempt to widen the tax net as taxpayers would consider tax avoidance measures. There will be massive capital flight, and the drive for direct foreign investment could be defeated.”JAMB Result

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