National Dialogue and Stakeholders’ Concern On Tax Reform Bills
Stakeholders from the Northern zone recently convened in Kaduna to offer robust perspectives on the ongoing conversations on taxation and tax reform bills presented by President Tinubu in addition to the effects the bills, if passed, will have on the geo-political zone, Olawale Ajimotokan reports
A public discourse on the tax reform bills currently before the National Assembly was organised by the Kaduna State Chapter of the Nigerian Institute of Public Relations.
The lecture with the theme: “Tax Reform: The Role of Public Relations and Fostering Constructive Dialogue for National Economic Renaissance” held at Stonehedge Hotel, Kaduna, allowed critical stakeholders from the north and other parts of the country to make inputs into the ongoing debate on the benefits or otherwise of the bills.
Minister of Information and National Orientation, Mohammed Idris, the Presidential Special Adviser, Media and Public Communications, Sunday Dare and the Head, of Treaties and International Tax Policy Division, FIRS Victor Kehinde Kajesomo represented the federal government at the lecture.
The Tax Reform Bills contain the Nigeria Tax Bill 2024; the Nigeria Tax Administration Bill 2024; the Joint Revenue Board of Nigeria (Establishment) Bill 2024; and the Nigeria Revenue Service (Establishment) Bill, 2024.
Federal government’s position
The federal government had justified the reason for the introduction of the tax reform bills by the Presidential Fiscal Policy and Tax Reforms Committee.
It reckons the bills would create an efficient tax system that will spur the country’s development.
Idris contended in his remarks that the theme of the lecture had brought to the fore yet again the place of constructive dialogue as a vital pillar of democracy.
He said globally, effective taxation was an important source of financial power for governments to provide social services for their citizens, adding there were substantial grounds to believe and assert that Nigeria’s tax administration system had become long overdue for reform, on account of design and implementation flaws as well as the general attitudes of taxpayers toward taxation.
He described the ongoing review of the country’s tax laws and realities as timely and crucial, especially as part of a larger set of macroeconomic reforms aimed at setting the country on an irreversible path of growth and development.
“What I will say is that it is very inspiring and heartwarming to see Nigerians from all walks of life coming out to express their views and opinions on these matters of critical national importance, as such is the very essence and meaning of democracy.
“Despite the challenge of trust deficit that tends to crop up around matters of governance in Nigeria, we have still been able to have what can be adjudged as robust debate on this sensitive issue.
“We will continue to ensure open lines of communication and engagement with the National Assembly and all other stakeholders on these taxation bills. We are all in this together, as one people, one nation, and just as we are being called upon to make collective sacrifices, we will also collectively reap the abundant social and economic benefits of all of these necessary reforms,” Idris said.
He stressed that the administration has also continued to implement an ambitious fiscal reform agenda that will devolve more resources to Nigeria’s state and local governments, adding that ultimately to the Nigerian people and in the spirit of true federalism, citizen engagement will become ever more critical.
Tax Not New for Christians, Says Ex-CAN Chairman
The former chairman of the Christian Association of Nigeria, Kaduna Chapter, Reverend. John Joseph was categorical, saying that tax payment is not new for Christians as the Bible encourages them to pay taxes.
Rev. Joseph said: “The fact about it is that from scriptural teaching, the Bible speaks more about paying tax than speaks about paying tithes, for those of us who read the Bible.
“ So the Bible encourages us to pay tax by telling us to give to Caesar what is to Caesar, obey covenant authority, and pay their tax because God has positioned them for that. We do know that in the developing world, in every society, a society where people pay tax, you find people responsible, you have people questioning government, and you have people participating in the act of governance.
“But sadly in Nigeria, tax has become like something new. People begin to see it as an exploitation. But permit me to say that there is a problem that we must address. It’s a problem of trust deficit. Because people seem to have questions about leadership. So even when leadership comes with milk for them to drink and grow strong, they will be asking whether this milk is not poison”.
He encouraged Nigerians to realise that the debate about tax and tax reform should be centered on how it affects people than dividing people along regional and religious lines.
“When you are telling me that tax reform is because it is anti-North, and I ask myself, am I not a Northerner’? I understand tax, and there’s nothing about tax that affects me as a Northerner alone but tax for Nigerians. We must begin to speak about Nigerians as Nigerians, not about regional people. If not, our progress will be deterred,” Joseph stated.
Gumi Says All Sectors of Nigeria Need Reforms
An Islamic scholar, Sheikh Ahmad Abubakar Gumi said the tax reform was not the only urgent intervention required in the country, noting that all sectors of the country require reform. He described the bill as a very positive thing.
“I think there is no sector of Nigeria that doesn’t need reform. But if we start with the tax, are we not putting the cart before the horse? Why? Because already there’s a draft bill on the question of regional governance. If there is regional governance, these tax laws will all change, depending on the region.
“So, I think the government needs to look into this. And I thank NIPR. I just asked, for 10 years we have been trying to convince the locals here, especially in the north, that the polio vaccine is useful, it’s not harmful. So I wonder where NIPR was. This is the job of NIPR, to engage the society on things that are of national interest, things of security. On the question of security, NIPR can do a lot by bringing government close to the people and people close to the government, so that we can have a very stable, progressive society,” Gumi said.
Tax reform long overdue, says former chairman ICAN Kano-Jigawa District
The past chairman, Kano Jigawa District of the Institute of Chartered Accountants of Nigeria, Addo Mohamed Abubakar reckoned that tax reform is long overdue in the country.
Abubakar described the extant tax laws operated in Nigeria as archaic and must not replace the economic realities. He also noted that the laws have been subjected to many modifications that practitioners don’t know where to start.
“We have like five or six bad modification orders, which make it very difficult for people to understand what to pay, how to pay it, and even what is the current position. So the reform is commendable because it tries to harmonize all these government positions. Of course, not without issues,” Abubakar said.
He reckoned that the debate on tax reform had become contentious because many people who lack knowledge of taxation are the ones telling people about the tax.
“The misunderstanding of those people who lack the knowledge affected and heated the debate ongoing. This is a very commendable thing from government, and now that we are doing this, I think the point of contention is definitions of so many things,” he said.
Sani warns North against playing religious card
Human rights activist, Senator Shehu Sani also joined the fray as a panelist. He warned the North not to unduly politicise the debate and descend into religious sentiment to destroy the Bill.
“This is the first time that a deliberate attempt is made to reset the Nigerian economy that has become stunted and parasitic over the years.
“The choice is for us in the country to continue to do things in the way of the past or look at the future areas of concern for us. We should stop intimidating our lawmakers and be the first to always complain against any policy as anti-North,” Sani said.
He described the North as the country’s most blessed region that is sitting on untapped natural resources, adding the contentious bills will catalyze the economic development of the region.
“Whenever they say reforms, the first thing is for us to study it. Why should we as northerners leave the government for those who didn’t vote for it? We fear depending on ourselves. Impulsive action to bills like this will not help our region,” he warned.
Sirajo Seeks awareness on bills
The former president of NIPR, Malam Mokhtar Sirajo asserted that Nigerians need to be educated about the pros and cons of the tax bills before the National Assembly.
He said many enlightened individuals were still uninformed when it comes to taxation.
“There are a lot of issues with the tax reform bills that are good, and they seem well-intentioned. It behoves us not to want to throw away the baby with the bath water. Let us be educated about the entirety of the bill, so that even if it is cherry-picking, you can do so and criticize. But one thing I have observed is that the bulk of the work is being placed on our brother right now because initially, the communication component to the tax reform exercise was zero,” Sirajo said.
North Should Hands off VAT from Alcohol Consumption
The Lead Discussant, Professor Mustapha Bagudo Muhammed, faulted the North on the issue of VAT receipt from alcohol consumption.
He criticized the zone for unnecessarily overheating the polity on the issue of VAT saying “We need to talk to ourselves”.
The Don said any income generated from the sale of alcohol is not allowed in Islam because the religion is against alcohol consumption.
He charged the North to make their economy better instead of complaining.
He stated that the concern of the North on the tax reform bill stemmed from VAT and education levy noting that if the tax reform is removed by 2030, NASENI and TETFund will be scrapped with attendant effect for the educational sector.
“The question that we need to discuss is, what is the implication of this? When you go to many high institutions in Nigeria today, what you can see is what? TETFund structures.
“If you remove TETFund structures in these institutions, those institutions will cease to exist. If by 2030, you say TETFund will cease to exist, what will happen to the Nigerian high institutions?
“The first concern is that, what we are thinking in the academia, is that the government is planning to privatize these institutions so that they will be charging fees to students, which in the long run is going to affect the poor people. I want them to look into this,” Bagudo Muhammed stated.
” In the long run, if we can put our house in order, we are going to benefit from this. My concern is if the 60 per cent is based on derivation or is it based on consumption. If it is based on consumption, northerners should not panic”.
In his remarks, the Governor of Kaduna State, Senator Uba Sani, expressed profoundness that President Tinubu had directed further discussions to be held on the tax reform bills before the National Assembly.
The governor, represented by the Attorney General and Commissioner for Justice, Sule Shuaibu SAN, also lauded the NIPR for the very bold role in shedding light on the bill.
In his presentation, the Deputy Director Head, Treaties, & International Tax Policy Division, FIRS, Kajesomo Kehinde Victor, said the tax reform bill would eliminate double-digit taxes, make the country’s economy competitive, and attract investment.
He added that under the tax, education, public air transport, medicine, and rent will be exempted, but schools are not exempted.
Quote
This is the first time that a deliberate attempt is made to reset the Nigerian economy that has become stunted and parasitic over the years. The choice is for us in the country to continue to do things in the way of the past or look at the future areas of concern for us. We should stop intimidating our lawmakers and be the first to always complain against any policy as anti-North
