Centre calls for tax incentives, lower import duty

The Centre for the Promotion of Private Enterprises has urged the Federal Government to deploy measures such as the introduction of tax incentives for low-income employees and small businesses and the reduction in import duty on certain products to mitigate the effect of the current reforms on Nigerians.

According to the economic and private sector think tank, the administration of Bola Tinubu needs to promptly deploy these measures to address the social outcomes of its recent reforms, especially the inflationary pressure induced by the fuel subsidy removal.

It stated that urgent measures need to be put in place to mitigate the soaring cost of living and the escalating operating and production costs, especially for businesses.

The Director/Chief Executive Officer, CPPE, Dr Muda Yusuf, stated this in the centre’s half-year economic review.

He said, “The Tinubu administration needs to promptly deploy measures to mitigate the current headwinds inflicted by the current reforms.”

“The interventions should be a mix of direct interventions, tax incentives for low-income employees and small businesses, reduction in import duty on some critical intermediate products for key sectors of the economy, import duty concessions for the transportation, health, power, and energy sectors.

“The improved fiscal space created by the reforms should make these mitigating measures feasible and they have to be implemented urgently in order to give the current reforms a human face.”

He noted that inflationary pressures may intensify in the near term, with the country’s exchange rate coming under pressure in the short term as forex demand backlog exerts pressure on the official forex window.

Punch/Hauwa Abu