Controversies trail FG Tax Reform Bill

several argument have trailed the Federal Government Tax Reform Bills before the National Assembly as while some States of the Federation are in support of it, many others are entirely against.

Some States are kicking against some sections of it, while others said they are still studying the bills to take a stand.

The division among the states came as the Presidency debunked insinuations that the Tax Reform Bills will make Lagos or Rivers more affluent and impoverish Northern states; and Small Business Owners of Nigeria, ASBON, Dr Femi Egbesola, backed the move, noting that it’s small business friendly.

States that are in support of the tax reform include Kogi, Benue, Delta and Ekiti

Those against include Borno, Nasarawa and Kano.

Anambra, many South-South states and Plateau said they are still studying the document.

Meanwhile, South-South Leader, Chief Edwin Clark has warned that if not properly handled, the move will create more problems for the country.

This was as Abia North Senator, Orji Kalu criticised the Federal Government for failing to involve key stakeholders in the ongoing discussions over the proposed tax reform bills with Senator Seriake Dickson (PDP, Bayelsa West), expressing confidence that the Tax Reform Bills will become law despite opposition from some quarters.

Tax Reform Bill won’t impoverish North — Presidency

Stating that the bills will not impoverish the North, the Presidency via a statement by Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, described the insinuation as reckless, maintaining that the bills will not destroy the economy of any section of the country.

Expressing worry over different interpretations by some political actors, the statement noted: “Since the public debate around the transformative tax bills before the National Assembly began in the last few weeks, various political actors and commentators have tried to obfuscate the facts, deliberately misinforming and misleading the public.

“Unfortunately, most reactions are not grounded in facts, reality, or sufficient knowledge of the bills. While some commentators have attempted to incite the people against lawmakers, others have polarized one section of the country against another.

“The tax reform bills will not make Lagos or Rivers more affluent than other parts of the country, as recklessly canvassed, poorer. The bills will not destroy the economy of any section of the country. Instead, they aim to enhance the quality of life of Nigerians, especially the disadvantaged, who are trying to make a living.”

Continuing, the Presidency said: “Contrary to the lies being peddled, the bills do not suggest that NASENI, TETFUND, and NITDA will cease to exist in 2029 after the passage of the bills.

“Government agencies such as NASENI, TETFUND, and NITDA are funded through budgetary provisions with company income tax and other taxes paid by the same businesses that are being overburdened with special taxes.

“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.

“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.

“The multiple taxes complicate the economic environment, making Nigeria uncompetitive for investment and preventing many businesses from growing or continuing their operations. Some companies have had to make the rational decision to relocate to other countries. We cannot continue on this path or wait for 20 years if this country is to deliver the prosperity we need for our people.

“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 key agencies as beneficiaries in a phased manner until 2030.

“The time frame offers ample opportunity for 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.”

It said that government imposes major taxes, be it income tax, consumption tax, or other taxes, to channel resources to its areas of priority at the time.

According to the statement, “imposing a separate tax to fund an agency is an aberration that is yet to yield results despite the huge burden on businesses. The tax bill seeks to address this problem.

“Relevant stakeholders and public analysts owe it a duty to properly educate themselves about the bills’ contents and avoid misleading the public for any reason.”

“We may be entitled to our opinions, but such views must be informed and based on facts, not emotions targeted at inflaming passions.

“In a period like this, when our people across the country look up to leaders for guidance and direction on matters of public importance, such as the Tax Reform Bills, leaders should be more measured in their public utterances to avoid heating the polity and polarising the country unduly.”

The Presidency said President Tinubu welcomes the public interest the bills have generated.

“He encourages 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.

“What is never in doubt is the imperative of changing the existing tax laws and administration that have become obsolete and unhelpful in achieving the growth and development we desire for our country.”