Why tax reform bills will fix the Nigerian economy – Oyedele

Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee says the tax reform bills awaiting legislative approval are tapped to fix the economy and enhance shared prosperity.

Oyedele who featured as a panellist at Channels Television’s town hall meeting on tax reforms Monday said the bills were not prepared to generate more revenue rather than ensuring inclusive growth.

The tax chief stated that “the fiscal and tax system is like the knee on the neck of our economic prosperity as a people”, explaining that the “primary objective of the reforms is not to generate more revenue”.

Read also: Tax reforms will ensure equity, fairness in revenue collection, disbursement – Oyedele

He added that there are misconceptions about the reforms which have now been laced with ethnic and political sentiments, emphasizing that the tax bills will “fix the economy in a way that there can be shared prosperity”.

According to Oyedele, these bills are looking to exempt low-income earners completely from tax, specifically those who earn about N83,000 per month or N1 million a year, reducing burdened households and individuals.

The controversial bill has generated heated debate among political leaders and stakeholders alike. While many are calling for the repealing of the reforms citing ambiguities and elements of marginalization, others are backing them saying the bills will transform the country’s economic trajectory.

Atiku Abubakar former vice president of Nigeria, Babagana Zulum, governor of Borno, Aminu Tambuwal, former governor of Sokoto State and a host of others have called on the federal government to withdraw the bills to create room for more consultation.

They warned that the bills if passed, would damage the northern region’s economy that’s grappling with a high rate of poverty and underdevelopment despite being the most populous part of the country.

Read also: Presidency to Northern governors: Tax bill will simplify, not burden you

Following approval of the Federal Executive Council in October, Tinubu transmitted four tax reform bills to the National Assembly for consideration.

The government says the bills are aimed at overhauling the nation’s tax system, preventing leakages and ensuring true fiscal federalism.

They include the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

The proposed legislation seeks to consolidate existing tax laws, establish clearer frameworks for tax administration, and create bodies like the Tax Appeal Tribunal and the Office of the Tax Ombudsman.

Oyedele stated that the presidency intends to ensure that the reforms are properly scrutinized and approved by the National Assembly within a year as “Nigeria had no luxury of time”.

“We have tax laws that are very old and no longer fit for mobiles, including those we inherited from our colonial masters,” the tax expert said.

“So, we said we’ll use the opportunity of this reform to rewrite those laws so that the laws made by Nigerians for Nigeria to be able to drive our prosperity going forward. And that’s what led to the four bills that we have before the National Assembly today that have been properly summarised,” he added.