Adeola: Tax Reforms Bills Presentation Altered Jan. to Dec. Budget Cycle Tradition

•Global survey reveals trust issues in tax systems

Ndubuisi Francis and Sunday Aborisade in Abuja

The Chairman, Senate Committee on Appropriation, Senator Solomon Adeola, said yesterday that the tax reform bills presented to the National Assembly by President Bola Tinubu, altered the January to December National Assembly’s Budget Cycle tradition last year.

However, as controversy dogs the federal government’s tax reform bills, a landmark global survey, Public Trust in Tax 2024, has revealed that while most taxpayers recognise the principle of paying taxes as a contribution to society, trust in how governments utilises tax revenues remains low.

Adeola, who is representing Ogun West Senatorial District in the Senate, told journalists in Abuja that efforts to pass landmark tax reform bills distracted the federal lawmakers from adhering to the January-to-December budget cycle, started by the 9th National Assembly.

He, nevertheless, assured Nigerians that members of the Senate and House of Representatives were working hard to meet the January 31, 2025 deadline for the passage of the 2025 appropriation bill.

Adeola explained that the budget review timetable released on Monday would not be changed.

He said deliberations were being fast-tracked to meet the proposed deadline.

Adeola noted that legislative attention was completely shifted to the tax reform bills, which demanded extensive deliberations and collaboration between the National Assembly and the executive arm of the federal government.

He said, “Along the line, the tax reform bills took a lot of our time and focus as we worked to ensure they scaled through.

“We are pleased that the bills have successfully passed second reading in the Senate and are now before the committee for final review.”

Despite the distraction, he said that lawmakers resumed work in earnest on January 6, 2025, with joint sittings of both the Senate and the House of Representatives planned to accelerate the process.

He acknowledged the challenges posed by the tight timeframe, expressing optimism that the deadline for the passage of the appropriation bill was achievable.

He said, “As proposed in the timetable, we recommended a joint sitting of both Senate and House committees to engage with ministries, departments, and agencies (MDAs).

“This approach ensures that we complete our work swiftly and deliver the budget on time.”

The Senator dismissed fears that the government’s fiscal and economic targets might have been compromised.

He then, reassured Nigerians that the National Assembly remains committed to supporting President Bola Tinubu’s policy goals.

Adeola said, “We are working around the clock to ensure that the delay does not derail the set aims and objectives of this administration, especially in driving economic growth and infrastructure development.”

He called for support and patience from members of the public and stressed that the Senate was committed to retaining credibility and efficiency in managing the nation’s fiscal policies.

He said, “We might have faced a slight setback, but we are determined not to lose focus.

“The budget passage by January 31 will allow the government to implement its programs effectively and on schedule.

“The Appropriation Committee’s focus on a joint legislative approach highlights the urgency placed on recovering lost time.

“We urge stakeholders and the public to remain optimistic. The process reflects the Senate’s dedication to ensuring economic stability and sustainable growth.”

Global Survey Reveals Trust Issues in Tax Systems

Meanwhile, a report, the Public Trust in Tax 2024, has revealed that while most taxpayers recognise the principle of paying taxes as a contribution to society, trust in how governments utilises tax revenues remains low.

The just-released report which covered countries in Latin America, Africa and Asia was conducted by the Association of Chartered Certified Accountants (ACCA), the International Federation of Accountants (IFAC), and the Organisation for Economic Co-operation and Development (OECD).

The survey established that transparency, fairness, and engagement remain vital to strengthening the fiscal contract with taxpayers.

It highlighted significant disparities in global perceptions of tax systems, looked at attitudes towards taxation both in theory and in personal experience, providing new evidence on the state of the fiscal contract in the countries studied, as well as attitudes on tax competition and cooperation.

 It also provided insights into how trusted nine different actors, including politicians, tax accountants, and social media, are as sources of tax information, and how frequently they are consulted.

According to the report, while 52 percent of respondents see taxes as a contribution to the community, only 33 percent feel tax revenues are spent for the public good, and just 32 per cent believe public services provide a fair return on their taxes.

The Public Trust in Tax survey highlighted some of the challenges faced by governments and tax authorities.

The survey results underscored the issues that needed to be addressed about how to best support trust in tax systems and thereby support sustainable development.

Key findings of the survey include that

most people seem to support the fiscal contract in principle, but in many countries they don’t see it working in practice, adding that 52 per cent agree that their taxes are a contribution to the community and 61 per cent say it is never acceptable to cheat on tax.

Chief Executive of ACCA, Helen Brand OBE noted: “Trust in tax systems is crucial for sustainable development and prosperity, and the findings of this survey highlight the challenges that many governments across the world face in building it.

“We look forward to using this important work to engage with policymakers, tax authorities and civil society to drive evidence-based policy initiatives to build effective and trusted tax systems.”

Commenting on the trust placed in tax accountants, Lee White, CEO of IFAC, said: “This trust places an enormous responsibility on our profession to act with integrity, to bridge the gap between governments and taxpayers, and to uphold the highest standards of ethics.”

Manal Corwin, Director of the OECD Centre for Tax Policy and Administration, emphasised the need to rebuild trust: “Support for the fiscal contract remains strong in theory, but it’s not being delivered in practice for many.”

In Malaysia, survey results revealed more optimism than the global average. While 56 percent of Malaysians believe taxes contribute to the community, 43 percent agree that revenues are spent for the public good.