The Nigeria Employers’ Consultative Association (NECA) has lauded the Federal Government for suspending the proposed telecoms tax in view of the economic challenges faced by operators and Nigerians in general.
The Director-General, Mr Wale Oyerinde, made the commendation in a statement on Tuesday.
“We commend the government for suspending the telecoms tax as it has the potential to compound the challenges of the sector and further burden Nigerians.
“At a time when the purchasing power of the citizens is being eroded by inflation and other negative economic indices and the telecoms industry is critically challenged, the best that government can do is to provide relief for the citizens and business owners, notwithstanding its dwindling revenue, “ he said.
Oyerinde urged the government to desist from increasing excise on spirits, alcoholic and non-alcoholic beverages as being proposed.
He said that the increases,if implemented, would not only worsen the already bad situation of the industry, but also create a major shock, leading to job losses.
According to him, businesses are not striving to be competitive again, but are now more concerned with sustainability.
Oyerinde said: “Rather than overburden businesses that are already struggling, government should explore other options for increasing revenue.
“This can be through widening the tax net; reducing governance costs; addressing the massive oil theft; and dealing with the unsustainable subsidy regime.
”The trend of multiplicity of taxes and other unfavorable economic factors have led to the shut down of many businesses while some others relocated to neighboring countries.“