NECA, CPPE, MAN, NACCIMA commend Tinubu over signing of 4 Executive Orders

***Tinubu assures of more better friendly business environment

By allcitynews.ng

Nigeria’s Organised Private Sector {OPS} and economic technocrats have commended President Bola Tinubu’s signing of four Executive Orders as part of his bid to improve the nation’s  business environment.

In their separate reactions on the usefulness of the orders, OPS and CPPE noted that the action was a step in the right direction.

By NECA
The Director General of Nigerian Employers’ Consultative Association (NECA), Mr Adewale-Smatt Oyerinde commended President Bola Ahmed Tinubu for the four new Executive Orders.

According to Oyerinde, “the new Executive Orders appreciates the movement of the commencement date of the Financial Act 2023 from May 28, 2023 to September 1, 2023 to reflect the 90 days minimum advance notice for tax changes in line with provisions of the 2017 National Policy via The Finance Act (Effective Date Variation) Order, 2023; the deferment of the commencement of implementation of the Customs, Excise Tarif 2023 to August 1 2023 from March 27 2023 also to reflect the advance notice for tax changes as provided by the 2017 National Policy via the Customs, Excise Tariff (Variation) Amendment Order, 2023; the suspension of the 5% Excise Tax on telecommunication services, the Excise Duties escalation on locally manufactured products; and the suspension of the nascent Green Tax by way of Excise Tax on Single Use Plastics (SUPs) including plastic containers and bottles, and the suspension of Import Tax Adjustment levy on certain vehicles.”

The commendation, according to Oyerinde became imperative because the new order has helped to bring relief to members of the OPS, saying: “the issue of multiplicity of taxes has become a major challenge to organized businesses in the country. Currently businesses are made to pay over 50 different taxes and sundry charges, among which are: Corporate Income tax, Import duties, Export duties, Excise duties, Rents, Capital Gains tax, Personal Income tax, Value Added tax, Stamp duties, Property tax, Licenses, Motor Parking fee, Motor Vehicle fee, Withholding tax, Land tax, Market License fee, Road tax, Business Premises, dividend tax, NHIS levy, Advert fee, Regulation fees, the new NYSC levy as well as the regular user charges such as electricity, water, disposal fee, etc.

“These huge tax burden, no doubt, has been a clog in the wheel of overall performance of organized businesses over the years. We had, at numerous fora expressed concern on the escalation of taxes including exercise duties and its adverse implication on the business operating environment”.

Moreover Oyerinde pointed out that: “we are indeed elated with the news of the Executive Orders, particularly with the suspension of the 5% Excise Tax on telecommunication services; suspension of Excise Duties on Tobacco (30% ad valorem rate with the introduction of specific rate of NGN 4.2/stick of cigarette for 2022; N4.7 per stick for 2003; and N5.2/stick in 202); Beer (N40/lite in 2002; N45/lite in 2023 and N50/lite 2024); and Wine/Spirit (20% ad valorem rate with a specific rate of N50/litre in 2022) as proposed in the 2022 Fiscal Policy Statement.

“The suspension of 10% Green Tax by way of Excise Tax on Single Use Plastics (SUPs), including plastics containers and bottles; Import Tax Adjustment (IAT) of 2% on imported motor vehicles of 2000 cc to 3999 and 4% on 4000 cc engines. The new Orders will no doubt, support the efforts at improving the operating environment and mitigate the high cost of doing business in Nigeria, particularly with the aftermath of the removal of fuel subsidy”.

By CPPE

Likewise, Director and founder, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf claimed that the decision of the president to revert some of the taxes was commendable and demonstrates the fact that he is a listening and responsive president.

Given all the challenges that the economy has been facing, especially on the fuel subsidy removal , it is only fair that we reduce other taxes otherwise many businesses will go under.

Secondly, these taxes have implication for inflation and the citizens have been complaining about the high cost of living, production and operating cost. FIRS wants to introduce VAT for the informal sector. It’s unnecessary, not even now that people are crying over the high cost of living and doing business”, he said.

By MAN

On its part, the leadership of Manufacturers Association of Nigeria (MAN) applauded President Bola Ahmed Tinubu over the prunning of the burdens that have been weighing down the progress of the sector.

Chairman of Apapa branch of MAN, Dr  Frank Onyebu, said “Manufacturers Association of Nigeria has been calling for the reversal of some of these unpopular, ill-conceived policies. We are certainly excited about it. It looks like we are coming to the end of the era of impunity, says  Dr  Frank Onyebu, Chairman of Apapa branch of MAN.

“I say this with due respect to the fact that MAN held extensive discussions with the immediate past regime on the need to not put additional tax burden on manufacturers who are mostly struggling to stay afloat. Suffice it to say that despite the agreement reached with government representatives, the government still went ahead to enact these draconian policies that are now being shelved.

I therefore give kudos to the new administration. I think that it has taken a number of positive actions within a relatively short space of time. We are encouraged by the new policy direction of this government and hope that it will be sustained. The government needs to take more steps to address the issue of multiple taxation. It needs to be careful not to kill the goose that lays the golden eggs.

We welcome and support an era of consultation with stakeholders prior to policy decisions. We need the government to not just consult but to actually listen to arguments presented by stakeholders and take them into consideration while enacting policies. We need to build trust. We need to build businesses not destroy them. We need to make our operating environment business friendly. I must warn that neighbouring countries with better business environment are waiting to snap up our existing factories.

I need to emphasize that manufacturing remains the backbone of any thriving economy. The manufacturing sector should therefore be nurtured and supported to reach its full potential. An attractive operating environment will attract more investment. Ultimately the government would generate more revenue from a larger number of thriving businesses than attempting to skin existing businesses out of existence.

By NACCIMA
In the same vein, Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) commrnded the action of President Tinubu.

NACCIMA President, Chief Dele Kelvin Oye said NACCIMA welcomed the recent interventions by the Federal Government on some recent tax changes.

“We appreciate the administration’s commitment to ensuring that Nigerian businesses are not unduly burdened by unfavourable policies.

“We note that the tax changes were intended to raise revenue while addressing important public health and environmental concerns. However, the lack of adequate notice and clarity on the implementation of the changes has resulted in significant challenges for affected businesses, including rising costs, falling margins and capacity underutilisation.”

Furthermore Oye said “We commend the decision by President Bola Ahmed Tinubu to sign executive orders deferring the commencement of the tax changes as contained in the Finance Act and Customs, Excise Tariff (Variation) Amendment Order. We also support the suspension of the 5% cent Excise Tax on telecommunication services, the Excise Duties escalation on locally manufactured products, the Green Tax on Single Use Plastics, including plastic containers and bottles, and the Import Tax Adjustment levy on certain vehicles.

“We urge the Federal Government to continue to engage with stakeholders and implement policies that are business-friendly and promote sustainable economic growth. We believe that the private sector is essential to achieving the government’s goal of higher GDP growth and reduced unemployment rate through job creation.”

Tinubu assures of more better business environment

It would be recalled that the Presidency in a statement made available to allcitynews.ng by the Special Adviser to the President, {Special Duties}, Communications and Strategy, Mr Dele Alake, President Tinubu assured manufacturing and service sectors that more reforms will be unfolded to enable efficiency and attract investments, saying the ongoing economic ‘‘revolution’’ will be deliberately steered to capture and favour teeming youths in the country.

Tinubu while speaking with visiting MTN team led by the Group Chairman, Mcebisi Jonas, at the State House said:
“We have a responsibility to revolutionize the economy so that our youths can share in the prosperity of the nation, otherwise we are only waiting for the dreams to be charted.’’

While acknowledging the sweeping changes across the world, largely driven by technology, Tinubu assuring the visitors of smooth business environment, stated that “If you have any problems or impediments do let us know. We are ready to remove bottlenecks to investments in the economy.”

President Tinubu said the growing rural-urban migration can only be controlled with more investments in digital technology that will directly improve healthcare systems and education for the poor.

“I am happy you are moving from Corporate Social Responsibility to be more incisive and inquisitive with technology so that we can see how we can partner structurally,’’ the President stated.

“You can do a lot for the economy by partnering with us. We believe no one can succeed alone. The structural adjustments we are making are to ensure we face the right direction and arrive at a destination that caters for our people.

“You and I will make sure that the people have a share of that prosperity. We will, together, build a well-informed society. We have to re-assess the journey. I am glad that the stock market is responding positively to the structural adjustments,’’ he added.

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