The presidency Monday reacted to the controversy surrounding the four tax reform bills that had passed second reading in the Senate, but got stuck in the House of Representatives, where further debate on the matter was suspended indefinitely.
In a statement issued by Mr. Bayo Onanuga, special adviser to the President on Information and Strategy, the presidency said no provision in the bills would impoverish the northern states or make the southern states, like Lagos and Rivers, more affluent.
Rather, it stated that the bills were out to better the lives of disadvantaged Nigerians struggling to earn a living.
The presidency, in the statement, stressed that the bills never made provision for the scrapping of some parastatals and agencies, like Tertiary Education Trust Fund (TETFUND), National Agency for Science and Engineering Infrastructure (NASENI), and National Information Technology Development Agency (NITDA), as being speculated in some quarters.
The release added that while President Bola Tinubu welcomed the public debate being generated by the bills, he advised leaders across the country, including governors, traditional rulers, students, and activists, among others, to use the opportunity of the public hearing to be organised by the National Assembly to ventilate their views on how to reform Nigeria’s tax and fiscal regimes.
The presidency stated, “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.”
It explained, “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, “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 cannot 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.
The released stressed, “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. 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 stated, “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.”
Meanwhile, Seriake Dickson, chairman, Senate Committee on Ecology and Climate Change, and senator for Bayelsa West Senatorial District, declared that the federal legislature would pass the tax bills, despite some opposition to them.
Dickson, a two-term governor of Bayelsa State, told journalists that if the National Assembly could pass the Petroleum Industry Act (PIA), nothing would stop it from doing the same thing with the tax bills.
Dr. Olisa Agbakoba, former President of Nigerian Bar Association (NBA), called for urgent devolution of powers across Nigeria’s three tiers of government to improve national governance, efficiency, and development.
However, Ghali Tijani, a member of the House of Representatives, described the bills as anti-people. Tijani, who represents Albasu/Gaya/Ajingi Federal Constituency of Kano State in the Green Chamber, maintained that the bills were not in tandem with public interest.
Meanwhile, Dickson declared that the National Assembly would pass the tax bills despite opposition to them in some quarters.
He also discarded fears that the planned public hearing on the bills could be chaotic if it was not postponed for further consultation.
The former governor encouraged anyone or group opposed to the bills to attend the public hearing with facts if they had issues with any sections of the proposed fiscal legislations.
Dickson maintained that if the National Assembly could pass the PIA containing three per cent statutory fees payable to the host communities, despite the Niger Delta leaders’ insistence on the 10 per cent recommended in the executive bill, the tax reform bills won’t be an exception.
The three per cent fee represents Operating Expenses or Expenditure (OPEX) of the previous year being remitted to host communities by oil companies, as stipulated in the PIA 2021.
The former governor of Bayelsa State said the late President Umaru Musa Yar’adua had proposed 10 per cent for the host communities, but the National Assembly passed three per cent, after about two decades, without any protest.
