CPPE Chides NASS over Hasty Passage of Finance Bill 2022

*Appeals to Buhari not to leave a legacy of unbearable tax burden on investors

Dike Onwuamaeze

The Centre for the Promotion of Public Enterprise (CPPE) has chided members of the National Assembly (NASS) for the undue haste with which it passed the Finance Bill of 2022.

The CPPE also appealed to President Muhammadu Buhari not to leave a legacy of unbearable tax burden for investors in the Nigerian economy.
The Founder of the CPPE, Dr. Muda Yusuf, yesterday in a statement titled: “Hasty Passage of the 2022 Financial Bill,” that it was regrettable that the NASS hurriedly passed the bill without the benefit of input from citizens whom they were elected to represent.

Yusuf said: “This is a major letdown by the NASS in its representation role in our democracy. The action is not consistent with the ideals and principles of our democracy because sovereignty belongs ultimately to the people. What the National Assembly has done is tantamount to disrespect, disregard and contempt of the Nigerian people and the business community.”

He added: “The CPPE is disturbed by the rushed passage of the 2022 Finance Bill by the National Assembly. It calls to question the representation role of the assembly. There was practically no room for public hearing and engagement with stakeholders in the consideration of the bill.”

Yusuf described the Finance Bill as, “a piece of legislation, which has profound implications for investment, citizens’ welfare and the Nigeria economy.
“It is curious and puzzling that the Senate gave just 24 hours’ notice for stakeholders to attend a public hearing on the bill.  The public notice was published on December 21, 2022, f

or a public hearing scheduled for December 22, 2022. It is an expression of deliberate exclusion of stakeholders from this important legislative process.”
He observed that the House of Representatives gave a more generous notice of about three weeks.  
“But in a sudden and baffling twist of events, the House passed the bill before the date of the advertised public hearing, which is January 13, 2023,” he said, adding that “the bill has since been forwarded to the President for assent. This haste is incomprehensible.”
He further stated that the bill effected wide ranging amendments on the following legislations: Companies Income Tax Act, Customs, Excise Tariff Act, Personal Income Tax Act, Petroleum Profits Tax Act, Stamp Duties Act, Value Added Tax Act, Capital Gains Tax Act, Corrupt Practices and Other Related Offences Act and Public Procurement Act.

He noted that the finance bill that had been passed contained the following provisions, among others: imposition of excise duties on all services with rates to be determined by a presidential order; imposition of 0.5 per cent tax on all eligible imports from non-African countries to fund Nigeria obligations to international organisations and an increase in Tertiary Education Tax from 2.5 per cent to 3.0 per cent of company profit.

“All of these have far-reaching implications for investors and citizens. It will affect the cost of production; it will affect operating cost and would undermine investors’ confidence. It has profound inflationary implications. It will effectively move corporate tax to almost 35 per cent which is one of the highest globally.
“Currently, corporate tax is 30 per cent; there is tertiary education tax of 2.5 per cent; NITDA tax of 1.0 per cent; NASENI Levy of 0.25 per cent; Police Trust Fund tax 0.005 per cent.

“Meanwhile, the NASS has already passed a bill imposing 1.0 per cent tax for NYSC fund [awaiting the assent of the president] and another 1.0 per cent Tertiary Health Levy is being planned.
“In the meantime, investors are grappling with macroeconomic headwinds including depreciating exchange rate, illiquidity in the official forex window, spiking energy cost, weak purchasing power, rising interest rate and surging inflation,” he said.

The CPPE, therefore, appealed to President Muhammadu Buhari not to leave a legacy of unbearable tax burden for investors in the Nigerian economy.

“The torrent of taxes, levies, fees is crippling business. We submit that the president should withhold assent on the 2022 Finance Bill until the NASS properly engages stakeholders as required by legislative protocols.”