By Miriam Humbe
Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, has said that she could not grant the suspension of the Financial Reporting Council of Nigeria (FRC) new levy as requested by the organised private sector.
The Minister said this on Wednesday in Abuja at a high-level stakeholders’ meeting organised by the Ministry.
In the place of an outright suspension, the Minister said that the Federal Government had paused the new levy implementation.
The Minister said: “A suspension will be a contravention of a legislation that was passed by the National Assembly. A pause is an administrative process simply to review what we have discussed today. And so that’s what we’re going to do, because we are a listening administration.
“The private sector has asked for a range of two to three months to an indefinite suspension. We are not going to do that.
“So, between now and at most 60 days, we are going to set up a technical working group comprised of FRC and organised private sector representatives.”
She said that there was room for a review since the the private sector had made formal written submissions.
Oduwole said: “The Chairman of the Tax Policy Reform Committee will also be a member of that committee.
“As you can see, it was a cordial conversation. You can see the Head of Nigeria’s organised private sector, you can see the CEO of the Financial Reporting Council, and we have listened because we are a listening government.
“You know, we are a listening government, and we want the private sector to be comfortable.
“We want the economy to thrive, so this is what we are going to do. We have already looked at global best practices on each side, and we will come up with the best for Nigeria.
“We will make the proposition and then, of course, we have to go back to Parliament. Wherever we land, it is still going back to the National Assembly.
“We are not going to preempt the discussions and the dialogue between the stakeholders.
“What is clear is that they cannot pay what they used to pay, but they may not pay what they are being asked to pay”.
The Stakeholders Speak:
Dele Oye, Chairman of the Organised Private Sector had urged the Federal Government to suspend the implementation of the levy.
Oye argued that the levy would further add to the burden of multiple taxes businesses in the country were already struggling with.
Stakeholders such as the Manufacturers Association of Nigeria (MAN), the Oil Trade Section, and other organisations also requested the suspension of the new levy.
Adewale-Smatt Oyerinde, the Director-General of the Nigeria Employers’ Consultative Association (NECA), cautioned against more taxes as it could force many companies out of the market.
He therefore called for the levy’s suspension, on the basis that businesses in the country were struggling to survive.
Chief Executive Officer (CEO) of the FRCN, Dr. Rabiu Olowo spoke in favour of the levy.
Olowo said that the levy would enable the Council serve financial entities better.
