Tax Reforms: Consider other indices for development other than tax increase, Deve expert urges FG

…says tax increase will further impoverish poor Nigerians

A Development Expert and founder of Global Initiative for Nigeria Development, (GIND) , Mr. Micheal Ale, has criticized the Chairman of the Presidential Committee on Fiscal, Policy and Tax Reforms (PCFPTR), Mr. Taiwo Oyedele, on his defence of the Tax Reforms policy being proposed by the President Bola Tinubu’s administration. Ale said Oyedele’s declaration that Nigeria lacks enough bugdet art allocation to provide developmental facilities is confusing, myopic and grossly incompetent to address the country’s current economic and development inadequacies.

The development guru also cautioned the Federal Government to desist from unfair comparison of the country’s revenue strength with other countries that have distantly different socio-economic realities, stating that there are other indices that must be considered other than the strength of a nation’s revenue.
Oyedele had compared Nigeria’s annual budgetary allocation to those of Kenya and South Africa , arguing that the relatively low revenue of the nation, considers giant of Africa, has prevented her from getting befitting infrastructures and fulfilling her development dreams. But reacting, Ale said such explanation is not only confusing, one-sided but unhealthy for meaningful and holistic development. He said there are other indices to be considered on planning for development other than revenue strength. His words:”Mr. Oyedele defence of the tax reforms policy is confusing and rubs on the research acumen of most development Practitioners all over the world. Partial implementation of development strategy, micro or macro , is inimical and shortchanged the tax payers. When tax is paid, the people naturally demand for development in return as this is a social contract. But the rush in taxes’ upgrade will further plunge the people, especially the masses, into abject poverty,” he stated.

Speaking further, Ale dismissed Oyedele’s comparison of Nigeria’s revenue strength to those of Kenya and South Africa, as misleading, saying the presidential aide ought to have made adequate references to other indices of development, which according to him, include environmental and social considerations. He added
that Nigeria’s environmental and social realities regarding strategies for development are clearly different from those of Kenya and South Africa and so there is definitely no basis is for comparison among these three countries.
Ale said: “ Well, as an financial person, Mr. Oyedele has only bared his views based on his field of expertise. As a development expert, for me, budgetary increase is not only the indices for National development, other factors for Sustainable development include the environmental and social considerations. Why not compare environmental and social activities in Kenya, South Africa, United Kingdom and United state of America with ours in Nigeria? Whatever is spent on infrastructure will not result to development as long as these other factors are not considered. Mr Oyedele should not confuse the presidency on his narrow thoughtfulness on what makes development works. In as much as money is important and adequate, other factors are critically important for sustainable development”, Ale clarified.

The development expert there fire advised the Federal Government to desist from implementing a grossly capitalist policy such as tax increase saying that would be unhealthy for development growth and would further impoverish the masses. Hisar him:”Federal government should jettison the tax reform policy at this time that people are stressed from different taxes. Moreso, the country is really not ripe for such capitalist reforms agenda. Although, the basic reform implementation has not been revealed but capturing the poor in the net is only resolving to capitalism.
“Government should articulate plan for social and enabling environment concerns other than tax reformation. Tax reform will make the poor go poorer and the rich, get richer, but the poor will always pay for the rich irrespective.
“Even if the company is taxed, its adverse effect goes to the people who patronize their products and services. So,the poor bears the brunt of such capitalist policy, irrespective of how the tax is reformed, the poor becomes poorer.

“To the Government of Nigeria, my advice is to make the tax affordable for the differing classes according to their capacities and more importantly, compel the companies in the upper class to provide high class social facilities for the benefit of the people and such facilities could be named after their companies. For example, 02 Arena in the United Kingdom (U.K) was built by the company and it makes case for their social responsibility and response to peoples” needs. They help government collect social taxes from services rendered to people and in turn utilize the tax for the benefit of the people through commercialization of the facility. The proceeds in turn return goes to the government for a long time, thus creating jobs along the process of developing and management.

“More of this budgetary allocation should not only lead to development rather, it should equally be channeled towards increasing research output, job creation and human capital utilization and training for development. Most countries mentioned by Oyedele have their development plans reviewed and assisted by world class development organizations such as UNDP or the Independent Development Consultant (IDC) but a lot of our government at both National and sub-National levels don’t have a guide to follow on development. They work haphazardly just as occasion demands. Budgets are turned out without any reference to development plan. We need to reform the National Budget and Planning department at all levels. We also have to strengthen M&E section and effectively, involve Independent Project Outcome Aggregators or validators on all projects to achieve meaningful results. Even if billions of Dollars are allocated and released for infrastructural projects, without adequate supervision, it will end into the failure and stagnant development” Ale advised.