COVID-19: NECA wants tax waivers, incentives to retain jobs

The Nigeria Employers’ Consultative Association (NECA), the umbrella organisation of the private sector (OPS) employers in Nigeria, has called on the Federal Government to consider tax waivers and other fiscal incentives that would enable them retain jobs.

The association made the call in an open letter to the President Mohammadu Buhari, following the series of monetary palliatives announced by the Central Bank of Nigeria (CBN) a few days ago.

It also canvassed the suspension of payment of taxes and levies, noting that the Coronavirus pandemic has affected business circles and activities.

According to NECA, “The Real sector is facing the risk of total shut down, as there are no imports and exports; sales are down and production at almost zero level. At the same time, workers are expected to be paid and other commitments honoured by the businesses.

“Tax-free cash flow boost for employers; a stimulus package to help pay wages or for investment to protect against a downturn in activity; the payment should be open to businesses with a turnover of less than N50 million”, NECA demanded.

The association also urged the government to allow for tax payment deferrals more flexible for a period of six months, upon request, with a discount on interest rates

The letter, which was signed by the Director-General of NECA, Dr. Timothy Olawale, called on the president to take more specific steps in providing palliatives and support to organised businesses. The group listed the specific support to include, among others, a temporary scheme for paying compensation to companies in risk of laying off in order to retain jobs to aid the continued existence of companies and prevent layoffs within private companies facing financial pressure as a result of Coronavirus.

“Under the scheme, which could last for the next three months, Government will cover 60% of the salaries of employees paid on a monthly basis, who would otherwise have been fired, with companies paying the remaining amount”, it stated. NECA further dvocated support from government to negotiate and reschedule bank loans, to aid in boosting businesses and also afford adequate time for payment, especially loans taken by companies within the past three months.