Victor EzejaAs controversies continue to trail the tax reform bills currently at Nigeria’s National Assembly, the presidency has stated that it will reduce tax burden on businesses and create a conducive environment for them to thrive.
The presidency also clarified that the tax reform is neither targeted at impoverishing the North nor destroying the economy.
Join our WhatsApp ChannelIn a statement released on Monday by Tinubu’s spokesperson, Bayo Onanuga, the president declared that contrary to views held in some quarters, the tax reform bills will not make Lagos or Rivers more affluent than other parts of the country.
Since the bills were sent to the National Assembly for consideration, the presidency expressed concerns that various political actors and commentators have repeatedly tried to deliberately misinform and mislead the public about the tax reforms.
It expressed concerns that most of the reactions are not based on facts, reality, or sufficient knowledge of the bills.
It said the tax reforms are meant to streamline tax administration, create a conducive environment for businesses to thrive and enhance the quality of life of the citizens.
The presidency underscored the importance of the bills in addressing multiple taxes which create burdens for businesses across the country.
“One reason President Bola Tinubu embarked on the Tax and Fiscal Policy Reforms is the need to streamline tax administration in Nigeria and make the operating environment conducive for businesses,” Onanuga clarified.
“For decades, businesses, investors, and private sector players in Nigeria have complained of being overburdened by a myriad of taxes and levies, including those earmarked to fund various government agencies and initiatives.
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“The multiple taxes complicate the economic environment, making Nigeria uncompetitive for investment and preventing many businesses from growing or continuing their operations.”
It pointed out that the burden of multiple taxes had forced some companies to relocate to other countries where the operating environment is more conducive.
The presidency also declared that no provision in the tax reform bills proposes scrapping government agencies such as NASENI, TETFUND, and NITDA.
It explained that what the new tax legislation proposes is a way of streamlining various taxes imposed on businesses and have a single tax that they all will share in a phased manner until 2030 when they would have identified other alternative revenue sources.
“The proposal, as contained in section 59(3) of the Nigeria Tax Bill, only seeks to consolidate some of the earmarked taxes imposed on companies and replace them with a single tax to be shared with the key agencies as beneficiaries in a phased manner until 2030.
“The time frame offers ample opportunity for the affected agencies to explore other funding sources in addition to budgetary allocations in line with the constitution and international best practices.
“It is a misrepresentation of facts to conclude that changing an agency’s funding source amounts to scrapping it. None of the countries leading globally in education, science, engineering, or information technology have similar earmarked taxes.
“The government imposes major taxes, be it income tax, consumption tax, or other taxes, to channel resources to its areas of priority at the time. Imposing a separate tax to fund an agency is an aberration that has yet to yield results despite the huge burden on businesses. The tax bill seeks to address this problem.”
The presidency further called on relevant stakeholders and public analysts to properly study the contents of the bill and avoid misleading the public.
It also cautioned political leaders to be more measured in their utterances about Tax Reform Bills to avoid heating up the polity and further polarising the country.
It further stated that President Tinubu appreciates the public interest generated by the bills so far and encouraged leaders across the country, including Governors, Traditional rulers, Civil Society Activists, Students, trade associations, professional associations, and the general public, “to take advantage of the Public Hearings that the National Assembly will organise to present their views on how best to reform our taxes and fiscal regime.”
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
