PRESIDENCY REFUTES CLAIMS THAT THE TAX REFORM BILLS AT THE NATIONAL ASSEMBLY SEEK TO MAKE LAGOS AND RIVERS STATES MORE AFFLUENT 03-12-24
By Sadiq Aminu The Presidency has refuted claims that the Administration’s Tax Reform Bills before the National Assembly seek to make Lagos and Rivers States more affluent than other parts of the country.
It argues that the bills will not destroy the economy of any section of the country as being peddled.
A statement by the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga says instead, the Bills aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living.
It equally denies that the Bills suggest the scrapping of NASENI, TETFUND, and NITDA in 2029., stressing that such government agencies are funded through budgetary provisions with company income tax and other taxes paid by the same businesses that are being overburdened with the special taxes.
The statement point out that one reason President 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.
It expresses dismay that most of the reactions against the Bills are not grounded in facts, reality, or sufficient knowledge of their objectives.
According to it, decades of consistent complaints by private sector players of being overburdened by a myriad of taxes and levies, propelled the reforms.
The statement further argues that such multiple taxes complicate the economic environment, making Nigeria uncompetitive for investment and preventing many businesses from growing or sustaining their operations, compelling some of them to relocate to other countries.
It explains that 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 statement says 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.
According to the Presidency, it is a misrepresentation of facts to conclude that changing an agency’s funding source amounts to scrapping it.
It stresses that President Tinubu welcomes public interest the bills have generated, adding however that 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 the country’s taxes and fiscal regime.