The Fiscal Policy Roundtable of the Nigerian Economic Summit Group (NESG) has emphasized the need for genuine implementation of the provisions of the 2021 Finance Act.
Mr. ‘Laoye Jaiyeola, Chief Executive Officer of the NESG, who spoke at the webinar event organised to discuss the impact assessment of the 2021 Finance Act,explained that the Fiscal Policy and Planning, Trade Investment and Competitive Policy Commission of the NESG organised the forum to address the impact of the 2021 Finance Act on the macro and micro economy of the nation.
Represented by a Board member of the NESG, Mr Nnanna Ude, Jaiyeola said the primary objective of the 2021 Finance Act is to enhance non-oil revenue and support the implementation of Nigeria’s annual budget and that the Act addresses critical areas including fiscal policy, domestic mobilisation, tax administration, financial sector reforms and public financial management.
He noted that the Finance Act poses a dilemma on how much tax revenue can be raised without a deleterious impact on households and that it introduced some tax increases that may be burdensome for individuals businesses, and that impact assessment of the 2021 Finance Act with the aid of evidence-based advocacy would aid the identification of crucial bottlenecks while articulating an action plan that would assist the implementation of the Act.
The thematic lead, Fiscal Policy and Planning, Trade Investment and Competitive Policy Commission of the NESG, Mr Taiwo Oyedele, said the fiscal landscape must be seen from the perspective of public debt, public revenue and public spending, noting that Nigeria’s debt is growing faster than her revenue.
He stated that Nigeria’s tax base is small and faces structural problems, but policies must be instituted to solve the issues by ensuring appropriate fiscal policy responses and review of extant laws while encouraging growth and raising revenue.
Speaking,the President of the Manufacturers Association of Nigeria (MAN), Engineer Mansur Ahmed, stated that there was the need to put short- and long-term considerations into the implementation of the 2021 Finance Act.
He emphasized the need to balance revenue mobilisation alongside tax burden on taxpayers, adding that for government to improve revenue, there was the need to critically analyse the fiscal space, considering that Nigeria’s tax net is not broad enough to ensure that taxable people pay the right amount of taxes as at when due.
“The finance act 2021 introduced technology for tax collection. It must be implemented so that taxpayers don’t see it as an additional burden, and stakeholders should be sensitised, helped or exempted, particularly small and medium scale businesses.
“Regulators should become more effective and help promote the growth of relevant sectors and should not see themselves as gate-keepers of incentives but help ensure that the implementation of the Act does not hamper small businesses.
“The manufacturing and industrial sectors should be supported to strengthen their capacity and competitiveness, especially considering the African Continental Free Trade Area (AfCFTA),” Ahmed explained.
President of Nigeria Labour Congress(NLC), Comrade Ayuba Wabba,said that subsidy of petroleum products ought to be provided to firms to help reduce production costs and passed on down to encourage consumption.
