By Badamasi Bello, Jadetimes Staff B. Bello is a Jadetimes news reporter covering Nigerian News
The recently proposed tax reform bills by President Bola Ahmed Tinubu have sparked wide debate among Nigerians. While the government insists that the reforms are critical to the economy, concerns have been raised by various stakeholders.
In furtherance of recommendations by the Presidential Committee on Fiscal and Tax Reforms, led by Taiwo Oyedele, four tax reform bills were transmitted to the National Assembly by President Tinubu on September 3, 2024.
The committee, therefore, had the onus to review the existing tax laws with a view to creating an efficient system.
The proposed bills are:
1. The Nigeria Tax Bill 2024: This is expected to provide a consolidated fiscal framework for taxation.
2. Tax Administration Bill: This bill aims at simplifying tax processes and reducing disputes by providing a single and coherent law.
3. The Nigeria Revenue Service Establishment Bill: Seeks to replace FIRS with NRS.
4. Joint Revenue Board Establishment Bill: Proposes the establishment of a tax tribunal and a tax ombudsman to enhance equity and cooperation.
Opposition from Northern Governors and Other Stakeholders
At a meeting in Kaduna, a north-western state, governors of the 19 northern states supported by some key traditional rulers reject the Nigeria Tax Reform Bill. Other major issues discussed at the meeting by the Northern States Governors' Forum included insecurity and poverty, as well as the education crisis.
Similarly, the National Economic Council, which is headed by Vice President Kashim Shettima and includes all 36 state governors, advised the President to withdraw the bills for re-evaluation and modification.
Also, Deputy Speaker of the House of Representatives, Rt. Hon. Benjamin Okezie Kalu, assured journalists that they would subject the bills to comprehensive scrutiny and align them with the desires of the Nigerian people.
However, he claimed that many governors had indicated earlier that tax reforms were not one of their priorities.
Calls for Clarity and Public Understanding
Former Senator Shehu Sani criticized Nigerians for forming opinions on the bills without fully understanding their content.
He highlighted the role of misinformation on social media, particularly regarding claims that the bills would disproportionately harm northern Nigeria while benefiting Lagos.
Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, explained that the Finance Act will no longer be relevant once the Tax Reform Bills become law.
According to him, the committee recommended that there should not be any Finance Act in 2024.
Economic Context and Public Reaction
The reforms are proposed amid growing dissatisfaction by Nigerians over economic challenges that include the removal of the fuel subsidy and an increase in electricity tariffs. Critics feel the introduction of new tax measures might increase economic hardship on Nigerians.
To allay fears, the Progressives Governors' Forum, PGF, headed by Imo State Governor Hope Uzodimma, promised to work with the National Assembly to see that the reforms were better communicated and refined.
Breakdown of Proposed Reforms
1. The Nigeria Tax Bill 2024:
Simplifies the tax regime by consolidating various tax laws.
Introduces a progressive PIT structure with lower rates for low-income earners.
