Tax Reforms: ACCI Urges 2-Year Grace Period on Tax Penalties
The Abuja Chamber of Commerce and Industry (ACCI) has urged government to suspend penalties on late tax filings until business owners adjust and fully understand new tax laws and systems.
Dr Aliyu Hong, Chairman, National Policy Advocacy Centre (NPAC), ACCI, disclosed this in an interview with the News Agency of Nigeria on Wednesday in Abuja.
Hong advocated a one or two-year grace period on penalties linked to the new tax laws to allow business owners adjust to compliance procedures.
According to him, business owners require time to adapt to Nigeria’s new tax laws and online filing systems.
“Online tax submission platforms should be properly tested and widely understood before enforcement of penalties for non-compliance.
“So government should allow a one or two-year moratorium on penalties as taxpayers are still learning the new tax system.
“Government should also prioritise building reliable online tax infrastructure before enforcing strict compliance measures.
“Therefore, penalties should only begin after the infrastructure becomes stable, tested and widely understood by taxpayers,” he said.
Hong, also Second Deputy President of the chamber, said the ACCI had a tax roundtable recently, which aimed to provide clearer understanding of the new tax framework for business owners.
According to him, the roundtable aims to educate members on the requirements, implementation process and obligations under the new laws.
“It is also meant to simplify the new tax laws for business owners and improve understanding among stakeholders,” he said.
Hong said that many Nigerians still lacked adequate understanding of the new tax laws and their practical implications.
He noted that implementation structures for the laws were yet to be fully developed and properly coordinated.
He urged government to adopt a gradual implementation process to enable business owners adjust effectively to the reforms.
The chairman said that taxation should not focus solely on revenue generation but also economic stability, employment and national development.
He said that no nation could achieve prosperity through taxation alone without creating conditions that encourage economic growth.
According to him, Nigeria’s business environment remains highly challenging for enterprises operating across different sectors.
He said many business owners independently provide electricity, water and security, increasing operational and production costs.
Hong noted that local enterprises would struggle to compete if unrestricted importation continued without adequate protection for domestic industries.
He advised government to address infrastructure challenges and create policies that support business growth, competitiveness and employment generation. #Tax Reforms: ACCI Urges 2-Year Grace Period on Tax Penalties#
ACCI Seeks Simpler Tax Compliance, Business-Friendly Reforms
