A piece of news that recently made it to the public space raising a lot of dust and conflicting opinion was the alleged plan by the Abuja Municipal Area Councils, AMAC to impose as tax and levy the sum of ₦100,000.00 on bakeries and other businesses in Abuja for using generating set and equipment.
The rationale put forward by this proposed move is not far-fetch from the dire need for finances to fuel governance. On the Contrary, the Abuja Chamber of Commerce and Industry (ACCI) has pointed that the move will achieve the direct opposite, frustrating the economy, ease of doing business agenda, and depleting profit of businesses.
The ACCI did not waste any time calling AMAC’s attention to the current high inflationary trend in the country and the aftermath effect of the proposed tax that can further jack up costs across the board.
Solutions proposed by the Abuja Chamber of Commerce and Industry
Taxmobile.Online analyzed from a recent statement by the professional group that rather than emphasizing on increasing the tax burden of already existing taxpayers in the Federal Capital Territory, exploring options like unifying tax processes, Public-Private Partnership among others is capable of boosting economic activities and incentivizing more business emergence in the FCT.
Issues surrounding the move by the Abuja Councils formed the key highlights in a recent Webinar hosted by the ACCI to commemorate World MSME Day, warning that targeting bakeries and other businesses for generator and equipment taxes is insensitive and a threat to food and national security.
Check out full statements of ACCI’s stand
“Imposition of new taxes like the generator and equipment taxes will not only be an additional burden to be borne by business owners, it will accelerate the collapse of more businesses, deepen unemployment and further hike inflation rate in the country. This is not in the best interest of government and people of the country,” the statement noted.
“We already wrote a letter to Mr. President and other relevant authorities calling for harmonization of taxes for SMEs. This is the best way to stop the high rate of business failure, create jobs and boost the GDP, as over 90 percent of Nigerian businesses are SMEs.
“Bakery business across the country are under serious operational challenges due to high cost of raw materials, epileptic power supply and high cost of logistics which have necessitated the steady increase of prices of bread. Consequently, many bakeries have shut down operations.
“We call on the leadership of Abuja Municipal Area Councils as well as other government agencies to suspend the planned imposition of generator and equipment taxes, as this is inconsistent with the Federal Government’s programmes to create an attractive business climate for business owners,” the statement concluded.
Highlights of ACCI’s Submission
- SME’s in Nigeria are already threatened and the best way to stop the high rate of business failure is to create jobs and boost the GDP, as over 90 percent of Nigerian businesses are SMEs.
- Additional tax to especially in the Bakery sector is a no brainer as bakery businesses across the country are under serious operational challenges due to the high cost of raw materials, epileptic power supply, and high cost of logistics.
- The group advocates suspending the planned imposition of generator and equipment taxes, as this is inconsistent with the Federal Government’s programmes to create an attractive business climate for business owners.