AdminNACCIMA and OPSN have submitted a memorandum to the National Assembly, strongly opposing the proposed taxation of Free Trade Zones (FTZs) in Nigeria.
The move is aimed at preventing the imposition of new tax burdens on FTZs, which could lead to capital flight, job losses, and economic instability.
Join our WhatsApp ChannelThe proposed Nigeria Tax Bill 2024 introduces mandatory minimum tax rates and eliminates tax exemptions previously granted under NEPZA and OGFZA. NACCIMA and OPSN argue that these changes would undermine the operational framework of FTZs, diminish investor confidence, and negatively impact long-term investment strategies.
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Key Concerns
– Loss of Investor Confidence: Removal of foundational tax exemptions could trigger capital flight as investors seek more favorable business conditions.
– Economic and Legal Repercussions: Amendments could lead to job losses, hinder domestic industry growth, and incite extensive legal challenges, destabilizing the economic landscape.
– Threat to Nigeria’s Economic Growth: FTZs play a pivotal role in Nigeria’s economic growth, enhancing export activities and providing a regulatory framework for business operations.
Recommendations:
– Remove proposed tax provisions affecting FTZs
– Amend NEPZA and OGFZA laws to maintain tax incentives
– Suspend new tax laws for 10-15 years to allow businesses to adjust financial models
NACCIMA and OPSN urge the National Assembly to take immediate action to preserve the integrity and attractiveness of Nigeria’s Free Trade Zones for both current and prospective investors.
