Taxation of Nigeria, CITN has appealed to the federal government to reduce taxes being paid by Micro, Small and Medium Enterprises, MSMEs.
President of the institute, Mr Mark-Anthony Dike, told the News Agency of Nigeria, NAN in Lagos on Wednesday that high taxes were taking about 30 per cent of the profits earned by MSMEs.
“MSMEs are not exempted from tax payment, but there is a need to protect them from high taxes because high tax is detrimental to the growth of MSMEs,” he said.
Dike said that the issue of duplication of taxes had become a serious problem for the industrial sector.
“Duplication of taxes is frustrating and it has become a problem that needs urgent solution.
“The national tax policy document highlights the taxes to be imposed on tax payers, but the rule is not being followed,” he said.
Dike said that there should be upward review of taxes on consumer goods and services instead of income tax.
“For instance, the Value Added Tax is painless for tax payers because they get value for their money. “Paying taxes on income is usually a big deal for the tax payers because it they are bulk sums,” Dike said.