Businesses owners and residents of Oshodi-Isolo Local Government Area, Lagos State, have vehemently opposed the council’s proposed hike in various levies and rates, describing the move as untimely and insensitive to Nigeria’s current economic realities.
In a recent public hearing, the council proposed significant increases in levies across different sectors. For instance, large hotels would be levied N700,000 annually, while medium-sized hotels would pay N300,000, and small hotels or lounges N150,000.
Beer parlours and guest houses are proposed to pay N30,000 and N70,000, respectively.
Sociopolitical activist Dr. Barnabas Otoibhi has urged the local government leadership to drop the plan, citing the dire consequences of such increases.
Otoibhi stated that implementing the tax hikes could worsen poverty levels, erode public trust, and negate the goodwill the government might have earned from other initiatives.
The open letter, titled “Don’t Increase Taxes at This Time of Hardship and Hunger,” highlighted the dire consequences of such increases.
Otoibhi stated, “On behalf of the residents and citizens of Oshodi-Isolo Local Government Area, Lagos State, I wish to appeal to the council to jettison any move to increase taxes because it is ill-timed. The period we are in is one of hardship and hunger, where citizens groan under excruciating economic pressure.”
“The consequences of increasing taxes at this time are many: the level of hardship and hunger on the citizens will increase, and the citizens will curse the government for increasing the level of hardship,” he added.
This development is not isolated, as experts have warned that implementing tax reforms amid economic hardship can be counterproductive.
In a similar vein, Kenyans recently rejected the Finance Bill 2024, which proposed stringent tax measures, amid economic hardship and repression.
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Jerome Kalu
Jerome Kalu is currently the Senior Correspondent of PIJAlance in Lagos. He was previously the Campus Information Desk (CID) Editor.