By Amanabo Ocholi, The Bureau News
The Bureau News reports that concerns are mounting over the Federal Government’s proposed taxation policy, which some stakeholders fear could cripple small and medium-sized enterprises (SMEs) across Nigeria.
In a statement issued in Kano, Hon. Haruna Kabiru Wakili, a public commentator, warned that the planned tax hike expected to take effect next year could trigger widespread business closures and massive job losses.
“90% of Businesses Already Struggling”
According to Wakili, about 90% of Nigerian businesses are already grappling with economic challenges caused by ongoing reforms. Adding fresh taxes on their turnover or double-digit profits, he argued, would push many into collapse.
“Implementing further taxes on struggling businesses will not only shut them down but also worsen unemployment and insecurity,” Wakili said.
He also raised alarm over the government’s plan to tax individuals whose annual income or transactions exceed ₦800,000, questioning the reliability of account transactions as a sole determinant of income.
Call for Stakeholder Engagement
Wakili stressed that while reforms are necessary, the Tax Reform Committee has not engaged stakeholders sufficiently.
“With all due respect, the strategy appears to lack thoroughness and adequate consultation. If the Federal Government proceeds without adjustments, it will disrupt the economy severely,” he added.
Broader Economic Context
The Bureau News recalls that the Federal Government has been pushing through a series of economic reforms aimed at boosting revenue and stabilizing the naira. However, critics argue that without adequate safeguards for businesses, the reforms could undermine economic growth.
