By Divine Ihechimerem
President Bola Tinubu on Monday said the proposed tax reform bills will not make the North poorer or destroy its economy.
He said contrary to claims, the bills do not disproportionately affect any region in Nigeria but are designed to enhance the quality of life for all Nigerians, including the disadvantaged.
A statement by Bayo Onanuga, Special Adviser to the President (Information & Strategy) said some political actors and commentators have attempted to polarize the country, creating divisions between the North and other regions.
The statement clarifies that this narrative is based on misinformation and is not supported by the facts of the proposed reforms.
It said the reforms aim to streamline the tax system and make the operating environment more conducive for businesses across the country, including the North. The goal is to improve Nigeria’s overall competitiveness and economic conditions, benefiting all regions, not just Lagos or Rivers.
Part of the statement read: 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 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.
“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 the 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 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.”