Nigeria has one of the highest Company Income Tax (CIT) rates globally and this is disincentive to business growth, Tax leader, PwC Nigeria, Mr. Taiwo Oyedele, has said.
He spoke on Saturday at the Finance Correspondents Association of Nigeria (FICAN) annual workshop themed, “Unlocking Opportunities in Nigeria’s Non-Oil Sector.”
According to Oyedele, Nigeria was in the top 10 in the world with highest income tax rate.
He said: “We pay Company Income Tax, CIT 30%, education tax, 2%, whatever is left; we pay withholding tax of 10%. If you add it together, it is more that 40% already. If you now make a mistake of having a group and you say it’s a holding company, another 30%. Who does that?
“When you start a business today, there is something called commencement rule. It is supposed to punish you during commencement, so that you pay tax twice. It does not make sense.
“What I keep saying to government is that I can insist that I have a pot that is this small and I say I must get 60% of this pot by all means. Or I allow this pot to be big enough and then get 10% of it. Government must remove tax disincentives. One thing I am asking the business community is stop asking the government for incentives because they will think they are doing you a favour. Ask them to remove the disincentives that are not allowing us to do business.