The President of Abuja Chamber of Commerce and Industry (ACCI), Prince Adetokunbo Kayode, has called for urgent tax reforms to safeguard Small and Medium Enterprises (SMEs) from the stifling demands for tax even before they make profit.
Prince Kayode made the call while speaking with newsmen in Abuja where he stated that the practice of mandatory requirement for tax clearance from companies newly registered is a disincentive for the growth of SMEs in the country, and also one of the stumbling blocks in the ease of doing business.
While noting the ongoing progress in national tax reforms, the ACCI chief advised tax authorities to immediately review the tax clearance system to reduce the burden placed on new and young companies springing up across the country.
“The growth of Small, Medium and Micro Enterprises depends very much on the enabling environment the government is able to create for them to grow. Their growth will in turn create jobs and collective wealth for the nation. All that is necessary must be done to nurture such new businesses.
“New companies should not be mandated to produce tax clearance until after a year or so of operations,” he also said.
“SMEs must not be taxed on operations but on profit. Companies’ duty is to pay tax on profit only if there is a profit. You are not to pay tax if you have not made profit or made a loss,” he said.
