Businesses should not expect any lowering or elimination of taxes as the government readies itself to present the mid-year budget review to parliament in the coming weeks.
Already, under the International Monetary Fund (IMF) programme, the government is expected to consolidate its tax systems to ensure that the country’s economic recovery is not compromised.
Market watchers have also indicated that it will be very difficult for the government to introduce new taxes, as businesses are already burdened.
In an interview with Citi Business News, Tax Analyst Francis Timore Boi encouraged the government to find innovative ways to enhance compliance with the existing tax measures.
“The expectation is that we should have enhanced compliance measures to boost tax revenue from existing taxes. Some have called for certain taxes to be scrapped, such as the COVID-19 levy, arguing it is no longer needed,” he said.
Mr. Timore explained that: “considering the amount the levy contributes to government coffers, I don’t think the government would want to remove it, especially when we are under an IMF programme.”
But he was quick to encourage the government not to make any attempt to introduce any new taxes.
“From the 2023 and 2024 budgets, a lot of taxes were introduced, and some have not been fully implemented. For example, the 5% excise tax has faced concerns from plastic manufacturers. Therefore, any attempt to introduce a new tax at this time may not augur well for the business community, especially with elections fast approaching,” he cautioned.
