The Executive and members of the Business and Hotelier Stakeholders’ Forum (BHSF), Edo State, have expressed deep concern over the recent increase in consumer tax and its negative impact on business sustainability in the state.
In light of the current harsh economic realities that have significantly eroded the purchasing power of citizens, the group has appealed to the Executive Governor, His Excellency, Senator Monday Okpebholo, to consider suspending the implementation of the consumer tax.
In a press statement dated February 20, 2025, signed by Chief Dr. Omogiade Edokpolo, Chairman, and Dr. Osado Tabusite, Secretary — and made available to The Nigerian Observer — the Forum emphasized that the introduction of the consumer tax would not only have far-reaching ripple effects but also amount to double taxation, as businesses and consumers are already burdened with multiple levies and taxes.
They warned that the new tax, if enforced, would exacerbate the financial burden on citizens and raise concerns about equity and fairness in the state’s taxation system.
The group highlighted the current struggles of businesses, noting that many are finding it difficult to retain even 20% of their customer base due to skyrocketing operational costs. These challenges have hindered their ability to provide quality services and generate employment opportunities. They cautioned that the consumer tax would further undermine the state’s economic viability.
“The implementation of consumer tax would foster inconsistent tax policies and create an uneven business environment,” the statement read. “It would place Edo State at a competitive disadvantage compared to other states where such taxes are not imposed, potentially leading to a loss of customers.”
The Forum therefore appealed to Governor Okpebholo to use his good offices to rescind the consumer tax in order to encourage business growth, which would, in turn, stimulate prosperity and create job opportunities for the youth.
They further called on the government to prioritize policies that support and strengthen local businesses, rather than impose additional financial burdens that could stifle economic growth.
Finally, the BHSF urged the state government to engage in constructive dialogue with business leaders and stakeholders, particularly members of the Forum, to collaborate on identifying alternative, sustainable revenue-generating solutions. They reiterated their commitment to fostering a business-friendly environment that would attract investors, emphasizing that repealing the consumer tax is essential for the survival, growth, and long-term economic health of businesses in Edo State.
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