1% TAX FOR NYSC CORPERS ON CORPORATE COMPANIES

The Director General of the Youth Service, General Muhammadu Fada announced that the NYSC trust fund which has just been passed into law by the national assembly and awaiting Presidential approval will be of benefit to skilled Corps members.

If assented, it would mean 1% levy tax for NYSC Corpers imposed on corporate companies in the country. The 9th national assembly has on various occasions moved for the imposition different taxes on corporate companies, some of which were passed while others are still on the floor of the house.

Imposing of a new levy tax will be a burden on organizations and it will scare away foreign investors from coming into the country because the companies are paying a lot of taxes and now the national assembly is adding to it. This is heavy on these companies especially when you look at the cost of running an organization, paying staff, cost of production, and running diesel.

One can only wonder if they sought advice from experts in the field before thinking of imposing a tax on corporate companies. They may mean well for corps members but do corporate organizations have to bear the brunt with taxation?

A presidential aspirant said there is a need to first create an enabling environment to make sure the people have a means of generating income for themselves then you can tax them.

This is the 6th trust fund tax that the government will be imposing on corporate companies with no major credible support the government given to SMEs, or how SMEs have hugely benefitted from policies that the government has introduced, this would have reflected on the internally generated revenue.

There is a gap between the government and the people. The government needs to see what people are going through every day to survive in this country. They make rules without knowing the reality and impact of those rules on the citizens.

An expert on the Taiwo Oyedele said if you continue taxing organizations like this then very soon businesses will be out of existence. I said earlier that at the end of the day this will fall back on the end users.

The government claimed to have started an enabling environment for corps members with vocational programmes running for Corps members to learn certain skills because the token after their youth service will only be given to skilled Corps members.

Will the fund be enough to set up their businesses? How much will be given to corps members after their Youth Service year or how the cumulative 1% tax will the distributed hasn’t been in the discussion yet. This is necessary to align with the transparent agenda of the government.

These and many more made up Tobore and Itunu’s discussion on Dreamcity about the intricacies and implications of this NYSC levy.