The Nigeria Employers’ Consultative Association (NECA) has secured a favourable judgement for its members against the Federal Government on the proposed plan to impose additional tax burdens on businesses.
In a suit filed in 2022, following a circular from the Federal Government, which proposed to impose additional tax burdens on businesses through the introduction of excise duty on non-alcoholic, carbonated and sweetened beverages, NECA had requested the court to dismiss the case on the ground that the circular was invalid and unjustifiable.
Other defendants joined in the suit include Honourable Minister of Finance, and the Honourable Minister of Budget and National Planning.
After three years of legal fireworks, Justice O.A Egwuatu of the Federal High Court, Abuja dismissed the 2nd Defendant’s Preliminary Objection for lack of merit. Delivering judgment on the substantive case, the court held in summary that the circular issued by the 2nd Defendant (Federal Ministry of Finance) is invalid and ultra-vires stating that the powers of the 2nd Defendant; and the 1st Defendant (the Customs Service) is not entitled to demand transport and feeding allowances from the plaintiffs (NECA members).
The court further declared that the circular entitled “Approval for the Implementation of 2022 Fiscal Policy Measures and Tariff Amendments,” dated March 1, 2022 issued by the 2nd Defendant (Honourable Minister of Finance, Budget and National Planning) is invalid and ultra-vires the powers of the 2nd Defendant
In his reaction shortly after the verdict, the Director General, NECA, Adewale Smatt-Oyerinde, described the judgment as another victory for organised businesses against official arbitrariness and unfortunate attempts to impose additional burdens on businesses.
About NECA
Nigeria Employers’ Consultative Association (NECA) was formed in 1957 to provide a forum for the Government to consult with private sector employers on socio-economic and labour policy issues. It is, therefore, the umbrella organization of employers in the Organised Private Sector of Nigeria.
NECA provides a platform for private sector employers to interact with the government, labour, communities and other relevant institutions in and outside Nigeria for the purpose of promoting a harmonious business environment that will engender productivity and prosperity for the benefit of all. NECA is not a trade union but a dynamic and highly respected professional body registered under the Company and Allied Matters Act 1990 with the following membership structure: