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Compel banks to stop stamp duty deductions, NECA tells FG

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Olusegun Oshinowo, NECA Director General.


The Nigeria Employers’ Consultative Association (NECA) has again called on the Federal Government to compel commercial banks to discontinue the deduction of N50 as stamp duties from the accounts of customers.

The Director-General of NECA, Mr Olusegun Oshinowo, made the appeal in an interview with the News Agency of Nigeria (NAN) in Ikeja on Friday.

He said it was wrong for banks to continue to make the deductions after a court ruling that such deductions should be stopped forthwith.

According to him, duplication of taxes in the country is largely responsible for the persistent dwindling of business activities nationwide.

“The biggest challenge businesses have in Nigeria is not multiple taxation but duplication of taxes. It is true that there are about 55 taxes paid by business operators in the country.

“For instance, after you pay VAT as a consumer, the Lagos State Government will ask you to pay hotel consumption tax because you want to use hotel facility.

“They are both consumption tax.’’

“Whether the FIRS calls it corporate tax, withholding tax, levies or sub-charges, the money is coming from the same purse.

“It is not until you give a name to whatever a business operator is paying for that it is tax. Evidence has shown that OPS members pay 55 different monies to the government at different levels.’’

The NECA chief cautioned that the government could be stifling the economy from attaining its potential with the legion of taxes imposed on people.

He warned that government should show caution on the number of taxes imposed on businesses so as not to discourage business ventures, especially foreign direct investments.

Oshinowo, who is retiring from service in December, said that his passion was to support young entrepreneurs with business ideas to boost job creation.He said that he had no plans whatsoever, to go into politics, noting: “politics is not for me’’.


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NECAOlusegun Oshinowo
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