Economic experts on Sunday raised concern over the high level of taxation in Nigeria and its negative effects on businesses, stressing that it had continued to fuel unemployment crisis nationwide.

The experts at the Abuja Chamber of Commerce and Industry called the attention of the Federal Government on the issue of high taxation, stressing that it had crumbled many enterprises and worsened joblessness in the country.

The chamber advised the government to broaden the tax base and reduce the country’s tax rates in a statement issued in Abuja and signed by the ACCI President, Al-Mujtaba Abubakar.

It said, “Increasing level of inflation, high taxes, and high interest rates contribute to the increasing cost of production. This has resulted in many businesses not breaking even and many are closing shops.

“The situation is further complicated by insecurity challenges and the exchange rate instability. We recommend easing the harsh business environment by transforming regulatory agencies into facilitating bodies.

“In a drive to generate funds at all cost, businesses in Abuja are subjected to more than five levels of taxation. This needs to change so that SMEs can thrive and employ more workers to ease the increasing level of unemployment.”

It added, “The chamber believes that the economy grows and the Gross Domestic Product multiplies when government’s policies, agencies and programmes facilitate, rather than impede businesses.”



The ACCI urged for government support and called for closer synergy between the public and private sector, assuring stakeholders the chamber was ready to fully support government at all levels in the drive to grow the economy, create wealth and resolve national economic challenges.

It further noted that as election activities commence in earnest this year, the business community hopes for a peaceful and progressive process that will protect the country’s economic and business activities.


The experts at the ACCI, however, acknowledged the many interventions of the government to enhance and boost economic opportunities.

“We also note the constraints confronting the government in the area of low revenue and mounting expenditure,” they stated.

The chamber added, “However, the persistent insecurity in the country has significantly affected the ease of doing business.

“We call on the government to follow through with its promises of re-energising and reorganising the security apparatus to tackle this hydra-headed monster to an end.”


https://punchng.com/high-taxation-fuelling-unemployment-crisis-killing-businesses-abuja-chamber/

If they reduce the tax rate and make people less poorer, how will they win elections with the weapon of hunger?

Unemployment has never being higher like this in Nigeria!