The centre revealed this via a statement issued by the Managing Director of CPPE, Muda Yusuf, made available toAccording to Yusuf, the provisions of the bill are too broad, inexact and wide-ranging and “makes the business community very vulnerable. There is no jurisdiction around the world where all services are liable to excise duty. Excise duties are typically specific and selective, and often imposed to disincentivise consumption or production of particular product groups.
He added that the current open-ended provision was unfavourable to investment, and that the bill should include specifics of services to be taxed for better stakeholder engagement.Expressing concerns over the heavy taxation burden on companies and service sector, Yusuf stated, “We are concerned that companies in the service sector are already paying huge taxes in the form of company tax which is currently at 30per cent, tertiary education tax at 2.
“All the taxes are percentages of company profit. Additionally, there are numerous taxes and levies imposed by state governments.”