Businesses should not anticipate any reduction or elimination of taxes as the government prepares to present the mid-year budget review to parliament in the coming weeks.
Under the International Monetary Fund (IMF) program, the government is expected to streamline its tax systems to safeguard the country’s economic recovery.
Market analysts have suggested that introducing new taxes will be challenging, given the current burden on businesses.
In an interview with Citi Business News, Tax Analyst Francis Timore Boi urged the government to explore creative methods for improving compliance with 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 stated.
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.”
However, he promptly advised the government against attempting 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 warned.
