By Nathaniel Zacchaeus and Cross Udo, Abuja
The Presidency yesterday debunked the insinuations that the Tax Reform Bills will make Lagos or Rivers more affluent and impoverish the North.
Controversies have followed the bills since President Bola Tinubu sent them to the National Assembly, with prominent northern leaders vehemently rejecting them because they are against the region.
Through a statement by Special Adviser to the President on Information and Strategy Bayo Onanuga, the Presidency described the insinuation as reckless, maintaining that the bills would not destroy the economy of any section of the country.
It said, “Instead, they aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living.”
Expressing worry over different interpretations by some political actors, the statement noted that: “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.”
*’No part of the proposed reform recommends scrapping TETFund, NASENI, NITDA
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 being overburdened with the special taxes.
“One reason President Bola Tinubu embarked on the Tax and Fiscal Policy Reforms is 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.
“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.”
It said that 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.
The statement states, “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.
“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.”
Similarly, the Chairman of the Presidential Tax Reform Committee, Taiwo Oyedele, has urged Nigerians to refrain from allowing a few grey areas in the proposed tax reform bills to prevent their passage.
The National Economic Council, which consists of the 36 state governors, recently advised Tinubu to withdraw the bills to allow for more comprehensive consultations, but the President said he preferred that they go through the legislative process.
Speaking at a Town Hall on the Tax Reform Bills organised by Channels TV yesterday, Oyedele, whose committee drafted the document, noted that the bills contain over 200 transformative provisions that can fix the country.
“These Bills have more than 200 transformative provisions to fix our country and set us on the right path to prosperity. We should not allow one or two provisions that we can easily discuss and agree on to become the pain or the bottleneck,” he added.
Oyedele said over 90 percent of Nigerians support the tax reform bills, noting that there are few areas where controversies can be ironed out.
He reeled out some of the bills’ benefits, including exempting low-income earners from paying taxes.
He said it will also reduce the PAYE of middle-income earners.
With these two, Oyedele noted that the tax burden on Nigerian workers will be reduced by more than 90 percent.
*Arguments against reform bill uncalled for– Ex-Speaker Dogara
Supporting Oyedele’s argument at the same event, a former Speaker of the House of Representatives, Yakubu Dogara, calls on Nigerians to be fair in assessing the tax bills.
Some critics argue that the bills are skewed against the northern region, while others claim they should be withdrawn for further review.
But Dogara faulted the criticisms of the bills and wants Nigerians to examine their benefits critically.
He said, “We should remove the cap of regionalism, the cap of sectionalism, the cap of religion and put on the cup of leadership because that will resolve our quarrel.”
With inflation over 30 percent and millions of Nigerians battling to buy essential commodities, critics believe the Tax Reform Bills are coming at the wrong time. In contrast, others think there was a need for more consultations over the bills.
However, Dogara said the arguments were insufficient to throw the bills away.
He continued, “I think one of the major objections is related to the issue of timing. I’ve heard this from leaders that I respect.
“But in leadership, when you talk about timing, the way I have heard them talk about it is a tragic misconception of the notion of time itself because there’s nothing like the future; there’s nothing like the past.
“All we have is now. It is what you are doing now that will become your past. It is what you are doing now that will affect your future.
“I don’t even care if it was part of the President’s agenda. All I am bothered with as a leader is: is it right?”
“Secondly, I have heard about insufficient consultation. I had heard even legislators speaking as if they were spokespersons for some governors’ forums or others instead of looking at what is right and proffering solutions.
“Now, I don’t know why he (Taiwo Oyedele, who leads the Presidential Fiscal Policy and Tax Reforms Committee and a panelist for the event) didn’t address some of these issues. But during our interface, he will address whether there was enough consultation with the governors.
“But I want to say this: at the state level, how many governors consult when making laws? I’m not challenging them. As a matter of fact, in some cases, state laws are written from the living rooms of governors.”
*NASS will pass bills same way it did with PIA- Senator Dickson
Meanwhile, the Chairman of the Senate Committee on Ecology and Climate Change, Seriake Dickson, said the National Assembly would pass the Tax Reforms Bills despite some opposition against them.
Dickson, representing Bayelsa West Senatorial District in the National Assembly, stated this in an interview with journalists in Abuja.
The two-term governor of Bayelsa State declared that if the National Assembly could pass the Petroleum Industry Act (PIA), nothing would stop the nation’s legislature from doing the same with tax bills.
He also allayed fears in some quarters that the planned public hearing could be chaotic if the event were not postponed for further consultations.
He urged anyone or group of people who are opposed to the bill to attend the public hearing with facts if they have issues with any sections of the proposed fiscal legislation.
Dickson maintained that if the National Assembly could pass the PIA containing 3% statutory fees payable to the Host communities despite the Niger Delta Leaders insistence on 10% recommended in the executive bill, that of the tax reform bills won’t be an exception.
The three percent fee is for Operating Expenses or Expenditures (OPEX) of the previous year that oil companies remitted to host communities as stipulated in the PIA 2021.
The former governor of Bayelsa State said the late President, Umaru Yar’Adua, proposed 10% for the Host Communities but that the National Assembly passed 3 percent after about two decades without protest.
Dickson said, “The Senate has passed the bills for second reading. A public hearing will take place, and people should get ready to present their positions. The tax bill is a law like every other law, and it has to go through the normal legislative process.
“Right now, taxes from Bayelsa State are paid to Lagos State, and I don’t want that to continue. When goods or services are consumed in any state, they should be calculated and paid to that state.
“Now there is an opportunity to review the tax laws and correct the anomalies, and that’s why I’m in support. Some states feel that when they apply the new sharing formula, they will earn less. It’s for them to raise those issues and bring the statistics. I don’t go by sentiments. I go by what is right and in the national interest.”
I asked whether there wouldn’t be uproar during the public hearing if more comprehensive consultations were not carried out, and Dickson said there would be nothing like that.
He said, “Forget about uproar; there will be no uproar. A public hearing allows people to present their matters, and nobody will be intimidated by the uproar.
“The PIA was passed. We wanted 10%, which was what Yar’Adua had proposed. They (federal lawmakers) reduced it to 3%. Heaven did not fall. This tax reform bill will pass, and heavens will not fall.”
