Korede Abdullah in Lagos
The Presidency on Monday denied it was targeting to scrap some institutions through the its tax reform bills. The bills have generated controversies with the northern leaders – elders, governors and lawmakers at the National Assembly opposing to the bills. The north challenged President Bola Tinubu to withdraw the bills, stating the president meant to impoverish the region should NASS pass the bills .
But according to a statement from the State House signed on Monday by Bayo Onanuga, Special Adviser to the President on Information & Strategy, the bills do not recommend scrapping key agencies such as TETFUND, NASENI, and NITDA.
“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.”, the statement said.
The government emphasized that the tax reform bills aim to enhance the quality of life for Nigerians, particularly the disadvantaged, by streamlining tax administration and making the operating environment more conducive for businesses.
“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.”, it said further.
The statement said that for decades, businesses in Nigeria have complained about being overburdened by multiple taxes and levies, which complicate the economic environment and make Nigeria uncompetitive for investment.
“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 statement read.
According to Onanuga, the proposed tax reform bills seek to consolidate earmarked taxes imposed on companies and replace them with a single tax to be shared with key agencies as beneficiaries in a phased manner until 2030.
This, according to the government, will offer ample opportunity for affected agencies to explore other funding sources.
President Bola Tinubu has welcomed the public interest generated by the tax reform bills and encouraged leaders across the country to participate in public hearings organized by the National Assembly to present their views on the proposed reforms.
“President Tinubu welcomes the public interest these 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.”, the statement concluded.
