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LCCI commends FG for suspending cybersecurity levy, seeks broader taxation
The Lagos Chamber of Commerce and Industry ( Lagos Chamber of Commerce and Industry) on Thursday commended the House of Representatives for asking CBN to suspend planned 0.5 percent cybersecurity levy due to public outcry.
The President and Chairman of the Council of LCCI, Mr Gabriel Idahosa, gave the commendation in an interview in Lagos.
Idahosa was responding to the suspension of the 0.5 percent cybersecurity levy on online transactions, which was earlier directed by CBN on Monday.
The LCCI boss, in an earlier interview, warned of backlash and called for reversal or suspension of the levy to prevent hardship.
The House of Representatives during the plenary on Thursday told CBN to withdraw the circular, which directed all banks to implement the levy two weeks after May 6.
Speaking on suspension, Idahosa said President Bola Tinubu’s administration had been a listening one, citing examples, including when it halted a policy on cash distribution.
“The Government has consistently shown their willingness to listen to the concerned public,” he said.
He also commended federal lawmakers for demonstrating their commitment to pursuit of policies accepted by the citizens, adding that policies succeed when the people and government were in agreement.
“So, we must commend the National Assembly that they are very much on the same page with Nigerians,” he said.
Idahosa, however, appealed to the federal government to expand its tax net to capture 60 percent of critical stakeholders currently excluded from taxation to raise needed revenue to run Nigeria’s economy.
He said tax reform surveys revealed that countries with fewer taxes collected more revenue to fund large sectors of their economies.
Idahosa cited South Africa as an example of the most successful tax revenue collecting country in Africa with only about 10 items of taxes where they generated enough revenue to fund all sectors.
“The unmistakable data is that the countries that have fewer taxes collect much more taxes, so they have funds for all sectors of the economy.
“They collect very large level of revenue from the main taxes, corporate taxes and income taxes and they have money for health, education, cybersecurity, for everything under the sun,” he said.
He said the practice of collecting taxes for every sector or activities in the nation should be jetisoned for the adoption of the more effective collection methods of fewer taxes capturing critical stakeholders.
He said tax collection logistics was expensive, adding that 60 percent of regular taxes in the nation were not being collected because of inadequate man manpower to handle the collections.
Idahosa said if corporate and income taxes were collected through full coverage of Nigeria, the funds would be more than enough to meet national needs.
“So, the whole idea that for everything that happens you have to collect the levy, levy for ITF for training, levy for Police Fund, levy for cybersecurity, means first of all that the cost of tax collection rises heavily.
“These collections are not cost free. You are going to set up structures, computer systems and people to monitor collections. So, the cost of collection and revenue collected per tax begins to show diminishing returns.
“Rather, government should put its energy in expanding the collection of the main taxes. Corporate income tax, personal income tax, Value Added Tax (VAT). In fact, VAT alone can provide enough resources and raise the tax revenue to the GDP of Nigeria closer to countries like South Africa that are doing extremely well.
“So, the fundamental principle is that, you don’t have to collect tax for every little thing but focus on the capacity and the efficiency and the wide reach of your primary revenue collecting agency which is the Federal Inland Revenue Service (FIRS),” he said.
According to him, more than 60 percent of the people who are supposed to pay corporate income taxes are not paying because the coverage of the FIRS has not been spread wide enough across the country.
“Outside the state capitals and a few big cities, you don’t see FIRS collecting taxes from all the companies in our sub urban areas.
“So, that is the basic principle, intensive collection from your primary revenue agency and having enough funds to meet the needs of all sectors and services in the economy,” he said.
The LCCI boss said the suspended 0.5 percent cybersecurity levy came as a surprise because the federal government had set up a committee to reduce the total number of taxes in Nigeria.
He explained that there were about 100 different kinds of taxes being paid by the business community,
He said most businesses in the nation were currently running on either losses or survival profits due to current exchange rates, interest rates, cost of borrowing and other economic issues affecting the nation.
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Cement price hike causing building collapse – COREN
Cases of building collapse in the country have been attributed to the arbitrary increase in the price of cement by producers of the product.
The President of the Council for the Regulation of Engineering in Nigeria, Sadiq Abubakar, stated this on Monday in his remarks at the investigative hearing organised by the House of Representatives Joint Committee on Solid Minerals, Industry, Commerce and Special Duties, to probe the price increase of cement in recent times.
This was as the Chairman of the Joint Committee and member representing Karu/Keffi/kokona Federal Constituency, Nasarawa State, Gaza Gbewfi, summoned the Chairman of the Cement Producers Association of Nigeria, David Iweta, for questioning over the development.
Iweta, who did to turn up for the investigative hearing on Monday, was summoned after previously turning down two invitations by the committee.
The committee also charged the association to desist from using frivolous court injunctions to interfere in its work as guaranteed by the provisions of the 1999 constitution (as amended)
“You will agree with me that an increase in the price of cement is one of the key culprits of building collapse. I am trying to connect the hike in the price of cement with the standardisation in our building and the direct connection of building collapse.
“There is a connection with that, and I think this something we must interrogate,” the COREN President said.
Gbewfi, while agreeing with Abubakar, also argued that the cost of cement has also brought about an increment in housing rents across the nation.
“Anything that has to do with livelihood should be treated as an emergency’” the committee chairman said.
At the investigative hearing, the joint committee also queried representatives of the Nigeria Building and Road Research Institute and the Federal Competition and Consumers Protection Council on the arbitrary price increase.
Gbewfi also chided the representative of the Chief Executive Officer of the FCCPC, Boladale Adeyinka for not doing enough to protect the consumers of cement in line with the Act establishing the agency, saying, “You are a mother that has forgotten your children.”
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Osun State Assembly okays salary increase for political office holders
The Osun State House of Assembly is to send a bill to Governor Ademola Adeleke to increase the salary package of some political office holders.
This was made known by the Speaker of the Assembly, Adewale Egbedun, during plenary on Monday.
The News Agency of Nigeria reports that the salary increment bill titled, ‘Osun State Public/Political Office Holders Reviewed Remuneration Package (Amendment No. 2) Bill 2024,’ was presented to the Assembly on April 30, 2024.
The Majority Leader and the lawmaker representing Ede North State Constituency, Kofoworola Adewunmi, presented the bill to the House as a private member bill.
While reading the policy thrust of the bill, Adewunmi stated that the last time the salaries of public/political office holders in the state were reviewed upwards was in 2007.
He said the salaries stipulated for public office holders in the Osun State Public/Political Office Holders Remuneration Package Law 2007 was, however, no more in tandem with the current economic realities.
“You will agree with me that the current economic reality is not the same as what was obtainable 17 years ago when the law was passed.
“It has, therefore, become imperative to review upwards, the salaries of some public/political office holders to better their living standard which is in tandem with the five points agenda of Governor Ademola Adeleke.
“In addition, the State Assembly resolution taken on May 8, 2008 wherein there was an upward review of the remuneration package of some public/political office holders not covered by Revenue Mobilisation, Allocation and Fiscal Commission, as proposed by the state government, has been further reviewed and subsumed under this bill.” he stated
He equally clarified that the salary increment didn’t affect or cover the lawmakers’ salaries, explaining that state lawmakers’ salaries are statutorily reviewed by the National Assembly.
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Minimum wage: Labour issues two-week ultimatum to defaulting states
The organised labour comprising of the Nigeria Labour Congress and Trade Union Congress, on Monday, ordered state chapters to issue two weeks ultimatum to states that have failed to implement the old N30,000 minimum wage.
The NLC and TUC took this decision during a jointly held National Executive Council meeting which took place on Monday.
“NEC-in-session further directed all state councils whose state governments are yet to fully implement the N30,00 national minimum wage and its consequential adjustments to issue immediately a joint two-week ultimatum to the culpable state governments to avert industrial action,” NLC’s National President, Joe Ajaero; and TUC’s National President, Festus Osifo, said in a statement.
Speaking further, the unions also called for a one-day action in Anambra State following what was described as the failure of the state government to meet the demands of civil servants in the state.
“Consequently, the NEC-in-session accordingly reaffirms the NLC and TUC joint ultimatum earlier issued to the Anambra State Government by its Anambra State councils. It therefore directed all affiliates and workers in the state council to mobilise their members to ensure a successful action in the event the state government fails to meet the demands of workers by Thursday, the 23rd of May, 2024.
“In the event that the government fails to meet the demands outlined within the stipulated timeframe, the NEC authorises the leadership of the NLC and TUC to take appropriate actions, including but not limited to the mobilisation of workers for peaceful protests and industrial actions, to press home these demands for social justice and workers’ rights.
“NEC therefore calls on all affiliate unions, and workers including Civil Society Organisations across Nigeria to remain united and steadfast in solidarity during this critical period. Together, we shall prevail in our pursuit of a fair and just society that guarantees the dignity and well-being of all its citizens,” the statement added.
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