Tax Bills Won’t Impoverish Any Region, Tinubu Replies North

President Bola Tinubu has declared that no provision of the Tax Reform Bills will impoverish the North.

Tinubu’s reaction is coming against the backdrop of fears expressed by Northern political leaders that the VAT reform bill, if passed and implemented, will drag the North backwards.

In a statement on Monday by his Special Adviser Information and Strategy, Bayo Onanuga, the President accused critics of the bills of deliberate misinformation and attempts to obfuscate the facts.

“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 polarised one section of the country against another.

“The tax reform bills will not make Lagos or Rivers more affluent and 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 for Nigerians, especially the disadvantaged, who are trying to make a living”, the President said.

Tinubu also dismissed speculations that the reform bills seek to abolish the National Agency for Science and Engineering Infrastructure (NASENI), the Tertiary Education Trust Fund (TETFUND), and the National Information Technology Development Agency (NITDA) in 2029, if the bills are passed.

According to him, 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 the special taxes.

The President said the Tax and Fiscal Policy Reforms was informed by the need to streamline tax administration in Nigeria and make the operating environment conducive for businesses.

Continuing, Tinubu said, “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 can not 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 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”.

He charged stakeholders and public analysts to properly educate themselves about the contents of the bills 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”, he added.

The President expressed appreciation for the public interest the bills have generated.

He however 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 the nation’s 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”, he said.

END

Tax Bills Won’t Impoverish Any Region, Tinubu Replies North is first published on The Whistler Newspaper