The Lagos Chamber of Commerce and Industry (LCCI) has issued a strong call for absolute transparency and the harmonisation of numerous levies into a single charge as Nigeria prepares to implement a new tax law starting next year.
Ending the Burden of Multiple Taxation
LCCI President, Leye Kupoluyi, expressed cautious optimism in an interview with The Guardian in Lagos. He stated that the upcoming legislation must finally resolve the long-standing issue of multiple and excessive taxation, which has weighed heavily on businesses for years.
Kupoluyi highlighted the severe burden faced by companies, noting that some organisations are compelled to pay 16 or more different taxes and levies to various government agencies on a regular basis. He lamented that many of these charges are duplicated, creating an inefficient and oppressive financial environment.
"We expect that this problem of multiple taxation is taken care of once and for all and levies are harmonised into just one, preferably," Kupoluyi asserted.
Transparency as the Cornerstone of Reform
The business leader emphasised that transparency is non-negotiable for the reform's success. "Most importantly, there must be transparency in the new tax reform; that is the only way it would work," he said.
He insisted the system must be extremely transparent and leave no room for ambiguity, preventing future disputes or the surprise introduction of new levies months or years down the line.
Kupoluyi outlined a fundamental principle for the new regime: taxes should not be punitive. Instead, they must be designed to foster business growth, stimulate job creation, and increase government revenue in a fair and equitable manner. He declared any tax that leads to business closures as regressive, insisting that taxes must be equitable, realistic, and business-friendly.
Protecting Businesses and the Path Forward
On safeguarding businesses under the new laws, Kupoluyi urged state authorities to avoid misinterpreting or misapplying the provisions. He also advised entrepreneurs to proactively educate themselves on the law's specifics to avoid being exploited.
While acknowledging widespread apprehension among businesses about potential tax increases, Kupoluyi sought to allay these fears. He pointed to government-led enlightenment programs designed to clarify the new law's structure, its impact on businesses, and what entrepreneurs should anticipate.
Beyond taxation, Kupoluyi commented on the broader business climate, advocating for:
- Urgent harmonisation of Nigeria's regulatory environment.
- Better coordination between fiscal and monetary policies.
- A comprehensive overhaul of national infrastructure to stabilise the economic system.
The call from the LCCI underscores the critical need for a simplified, transparent, and growth-oriented tax system as a cornerstone for Nigeria's economic development in 2025 and beyond.
