Victor EzejaFormer lawmaker, Senator Shehu Sani, has stated that the proposed tax reform bills have provisions that will spur every region in Nigeria to rise and be financially independent.
Sani, who stated this via a post on his X handle on Friday, reiterated his support for the tax reform.
Join our WhatsApp ChannelThe four bills, which seek to streamline taxes, eliminate multiple taxation and harmonise processes across all levels of government, have been vehemently opposed by some northern political and religious leaders who claim that the reform is against the interest of the region.
Some of their contentions are that the timing of the passage of the bills is wrong and that the derivation model proposed for distribution of value added tax (VAT) will not favour the northern region.
However, the presidency has continued to highlight the benefits of the tax reform such as creating a conducive environment for businesses and investments to thrive; improving the wellbeing of individuals who contribute to the growth of the economy by reducing their tax burdens; and creating efficiency in tax administration in the country.
Sani said the fact that South South Senators have endorsed the Tax reform Bill currently before the National Assembly “is a strong message to all the regions in the country to look inward for sustenance and development.”
The former lawmakers who represented Kaduna Central in the Senate noted that the tax reform presents an opportunity for every region to explore ways of becoming financial stable rather than being docile and waiting for monthly allocations which comes mostly from oil revenue.
He further stated that even Saudi Arabia and the United Arab Emirates (UAE) which have large oil reserves have started making plans for alternative revenue streams following the growing global interest in decarbonisation.
“There are times in life, you have to be evicted from your comfort level and be challenged before you explore the possibilities and greatness in your docile and dependent life.
“Even Saudi and The Emirates are preparing themselves for the post oil future, so should we. There is a message in that Bill,” Sani added.
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Speaking at town hall meeting organised by Channel Television on Monday, chairman, Presidential fiscal policy and tax reforms committee, Taiwo Oyedele, said the essence of the reform is not to start generating more revenue for the Federal Government but to fix the economy in such away that there is shared prosperity.
“If your businesses are growing, expanding within and outside the shores of this country, if our individuals are earning income and thriving, then taxes will be a natural consequence of that prosperity. That is really the fundamental objective of the reforms,” Oyedele emphasised.
He said there will be zero per cent VAT on food items, healthcare, education, baby products, electricity generation and transmission, transportation, CNG, renewable energy, and fuel among other consumables.
He said the federal government will give 5 per cent of a share of VAT revenue to states and empower them more to generate revenue as sub nationals.
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.
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