By Deji Ariyo
(With Agency Reports)

Executive Commissioner for Stakeholder Management in Nigerian Communications Commission (NCC), Mr. Adeleke Adewolu has cautioned against the imposition of multiple taxation, stressing that it can constitute an impediment to the economy.

He warned that multiple taxing reduces the ease of conducting business, diminishes the tax base, incentivizes tax evasion, and complicates tax compliance.

He made the statement at a regional stakeholders’ workshop on multiple taxation and regulations in Ibadan, the Oyo state capital which had stakeholders including representatives of state governments, experts and telecommunication companies in attendance.

Adewolu who spoke on the theme, “Multiple Taxation: An impediment to Economic Development,” hinted that multiple taxation spelt danger for economic development in the country, adding that the thrust of the workshop was to identify issues relating to multiple taxation and proffer solutions.

He noted that the National Tax Policy of 2017 emphasized the need to eliminate multiple taxation at all levels of government, adding that the policy stated that taxes similar to those collected by one level of government should not be introduced by another level of government.

“Despite the prospect of accelerated economic growth, the presence of multiple taxation, which the World Bank has termed ‘nuisance taxes’ has and continues to prove to be a bane on economic development in the country.

“However, before addressing how multiple taxation is an impediment to economic development, it is important to emphasize that taxation, in and of itself, is a veritable tool for economic development.

“The curious question is how a fiscal tool for economic development like taxation can become inimical to economic development.

“It is imperative therefore to correct some misconception about taxation, particularly the misguided notion of taxation as a penal tool on thriving business enterprise.”

Adewolu stated that taxation is the backbone of public finance since it provides assured and sustainable sources of money for social programmes and public investments, while also serving as a tool curated by the government to effectively and efficiently share our commonwealth.
“It is thus evident that taxation is critical for making growth sustainable and equitable. Thus, taxation by design is an instrument for economic development and it is important to acknowledge and support the initiative of all tiers of government in using taxation as an instrument for socio-economic development.

“However, supporting the tax initiatives by the various tiers of government includes indicating where a category of taxes has become cancerous to economic development.

“These type of taxes typically manifests themselves in the form of multiple taxation and by design, they reverse growth, stifle innovation, and discourage investment. In parabolic terms, they are the scarecrows mounted by the government to disincentivize development.

“It is pertinent to note that the National Tax Policy 2017, emphasises the need to eradicate multiple taxation at all tiers of government. Specifically, the Policy states that taxes similar to those being collected by a level of government should not be introduced by the same or another level of government.

“The federal, state, and local governments shall ensure collaboration in harmonizing and eliminating multiple taxation,” he said.