The Abuja Chamber of Commerce and Industry (ACCI) has cautioned the area councils and other government agencies against speculated plan to impose N100, 000 tax or levy on bakery and other businesses in the Federal Capital City (FCT), arguing that it will push up food prices, resulting to additional burden on Nigerians who are already buffeted by inflation.
The ACCI President, Dr Al-Mujtaba Abubakar, drew the attention of the Abuja area councils to the current high prices of food, warning that generator and equipment taxes on Abuja businesses will worsen the situation and deepen unemployment crisis facing the country.
While urging the councils to explore other means of raising revenue such as engagement in business ventures, the chamber reminded the councils that the Minister of the Federal Capital Territory Administration had previously restated his desire for harmonisation of taxation within the FCT, asking: “why are the agencies going against the policy intent of the FCT Minister?”
He continued: “Imposition of new taxes like the generator and equipment taxes at this critical economic time will accelerate collapse of more businesses, deepen unemployment and further hike inflation rate in the country. This is clearly not in the best interest of government and people of the country.”
Abubakar recalled that participants at ACCI webinar to mark the World MSME Day had unanimously advocated harmonisation of SME taxation, warning that targeting bakery and other businesses for generator and equipment taxes is insensitive and a threat to food and national security.
“We already wrote a letter to Mr. President and other relevant authorities calling for harmonisation of taxes for SMEs. This is the best way to stop the high rate of business failure, create jobs and boost the GDP. The FCT Minister is equally in support of tax harmonisation. This is the way to go 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 and epileptic power supply, making them to increase their prices and forcing many of them to close down their businesses. It is height of insensitivity to tax businesses for sourcing power supply privately due to power supply crisis in the country.
“We call on leadership of Abuja area councils or any other government bodies contemplating such inhuman taxes to stop. The move is not only anti-government, it is anti-people. It appears like a move to incite the people against government,” he concluded.