Vice President Yemi Osinbajo  has decried high mortality rate of small and medium sized enterprises (SMEs) in the country, attributing it to payment of multiple taxes.

Osinbajo who made the remark at the 1st Abuja SME Conference and Exhibition, organised by the Abuja Chamber of Commerce and Industry (ACCI), with the theme, ‘Solution Strategies for Resolving Tax, Regulatory, Packaging and Logistic Challenges Facing Nigerian SMEs’, was represented by Mariam Katagum, minister of state for Industry, Trade and Investment.

The vice president noted that the problem of taxation on the growth of SMEs in the country was exacerbated by lack of reliable data for statistical analysis, noting that the high rate at which small businesses were shutting down was mainly because of tax-related problems.

“The mortality rates of SMEs are very high, and among the factors responsible for this are tax related issues.

“Some of the specific challenges related to taxation are multiple taxation at the national and sub-national levels, non-clarity on the procedure and amount to pay and non-friendly tax administrators.”

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He said it was on the above premise that the government, through the Finance Act 2019 and 2020, amended various tax and fiscal legislations to align the Nigerian business environment with global standards.

“One of such amendments is the categorisation of companies into small, medium, and large companies, based on annual gross turnover as seen in the Finance Act 2019.

For its part, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) charged the government to put adequate infrastructure in place and restrict importation of foreign goods for successful operation of SMEs.

Its President, Ide Udeagbala, who was represented by the 1st Deputy President, Dele Kelvin Oye, explained that  restricting massive importation of foreign goods  that SMEs can produce locally could protect them against competition with foreign firms. He urged government at all levels to pay attention to the needs of small business owners to enable them fully harness their potential as the veritable vehicles of inclusive economic growth and development.