BARR ( DR ) UGOJI NWABUEZE
There is a raging debate in the public domain on President Bola Tinubu’s proposed tax reforms ongoing at the National Assembly. For those who are not arm chair critics, there is an opportunity for all interested in democratic governance to make contributions.
I have genuinely gone through the Tax Bill and felt quite elated at some of Its aspects and commends Mr President for the spirit of the law.
For instance, over 90% of workers in the public and private sector will no longer pay income tax if it is passed into law.
Over 82% of what low income persons consume will be VAT free. VAT will no longer be calculated based on where the companies have their headquarters but where their goods are consumed. That means more availability of the product at cheaper rate.
The Federal Government has proposed that its share of VAT will reduce from 15% to 6, while states will get 10% while Local Government Areas gets 90%. The implication also is that more money will drop into the coffers of Local Government Areas so it can attend to the needs of rural communities.
Customs and other related government agencies will be divested of powers to collect tax as only one Agency will be responsible for collection of all taxes in Nigeria. Hope the monopoly of Allowing one single organisation to collect the tax will not become a conduit pipe to siphon our collectivetreasury.
Supporting the bill to fly could lead to abolition of other multiple tax laws like the stamp duty act. This is also good news.
Another cheering news is that over 90% of small businesses would no longer pay profit tax as there will be gradual increase of VAT from 10% in 2025 to 15% in 2030. The further implication is that almost every goods’ consumed by low income earners will be exempted from VAT.
The shocking bad news is that many Nigerian companies pay over 60 types of different tax & levies. You can now appreciate why this tax bill seeks to end any factor with potentials of killing Nigerian industries.
This writer urges the National Assembly to truly feel the pulse of citizens and allow it’s wishes and inputs to truly prevail before the bill is passed into law.