A 2024 Pre-Budget Survey by auditing and accounting firm, KPMG and the United Nations Development Programme has revealed that the Electronic Transfer Levy (E-Levy) and COVID-19 Levy are among the top five taxes killing businesses.
The respondents of the survey felt the current tax environment was adversely impacting their businesses.
Indeed, they identified several taxes, including the E-levy (76%), COVID-19 Levy (68%), Import Tariffs (68%), Petroleum Levy (62%), and growth and sustainability levy (51%), as areas where modifications could potentially alleviate the burdens faced by businesses.
Respondents also proffered the following top three recommendations, aimed at augmenting tax revenues and fostering fiscal savings.
Businesses list E-Levy, Covid-19 Levy among 5 top taxes killing their operations – KPMG Budget Survey
A 2024 Pre-Budget Survey by auditing and accounting firm, KPMG and the United Nations Development Programme has revealed that the Electronic Transfer Levy (E-Levy) and COVID-19 Levy are among the top five taxes killing businesses.
The respondents of the survey felt the current tax environment was adversely impacting their businesses.
Indeed, they identified several taxes, including the E-levy (76%), COVID-19 Levy (68%), Import Tariffs (68%), Petroleum Levy (62%), and growth and sustainability levy (51%), as areas where modifications could potentially alleviate the burdens faced by businesses.
Respondents also proffered the following top three recommendations, aimed at augmenting tax revenues and fostering fiscal savings.
They include an imperative broadening of the tax base, rationalisation of government expenditures and a comprehensive review of some of the government’s flagship programmes such as the free SHS.
They said abolishing some of these taxes or lowering the tax rates may initially reduce tax revenue, but are likely to positively impact consumption and expenditure and thus, ultimately enhancing tax revenue.
Businesses call for review of Free SHS
The stressed that the Free Senior High School programme has effectively boosted secondary school enrolment and would create a skilled workforce.
However, the financial burden on the government is substantial, adding “We suggest revising the policy to permit financially able parents to contribute to the cost of SHS education while ensuring continued free access for needy students”.
Businesses urge government to simplify processes for business registration
On businesses and regulatory reforms, the businesses said there is the need for the government to continue with digitisation and simplification of the process for business registration and obtaining licenses.
Additionally, the government should establish a revolving sustainable and affordable funding for MSMEs. The Government should also expand programmes that incentivise banks to fund MSMEs through risk-sharing.
Source: joyonline.com
