Mohammed Shosanya
The Nigeria Economic Summit Group (NESG) is increasing its tempo of support for the tax reform bills currently before before the National Assembly,saying they are designed to shift the tax burden to high-income earners and profitable enterprises,while protecting the working poor and vulnerable businesses.
The Chief Executive Officer,NESG,Tayo Aduloju,who disclosed this to journalists in Abuja at the weekend,said the bills would bring about significant step towards fiscal equity, expanded revenue generation, and economic transparency when they become law.
Advocating a comprehensive legislative review on account of the volatility of the bills,Aduloju implored the lawmakers to reopen public hearings to assemble inputs from all geopolitical zones, highlighting the importance of striking economic equilibrium with political considerations.
He reasoned that legislative process must account for equity concerns, institutional capacity, and impact assessments on the tax reform bills.
He emphasized the need for transparency in tax collection,adding that the bills address issues like unauthorised non-state tax collectors and the absence of mechanisms for VAT refunds.
According to him,the tax reforms are catalyst for a wider conversation on fiscal federalism,adding that while the proposed laws may not resolve all fiscal inequities, they set a clear path for progress on the nation’s tax system.
He said:“These reforms require the spirit of federalism to succeed. Lawmakers must refine the bills to ensure they work for more Nigerians”
He said the reforms are a huge improvement over existing tax policies and urged all stakeholders to engage constructively, adding that:“If the final legislation does not protect the working poor, expand the tax net, or enhance transparency, we will not hesitate to speak out”.
He emphasized NESG’s support for policies that exempt low-income earners and small businesses from additional tax burdens in line with President’s instruction on value-adding tax system.
“These bills aim to allocate the tax burden fairly and build a better social security system, identifying those whose incomes already categorise them as working poor and exempting them,”he stated.
He spoke on his group’s role in the Presidential Committee on Fiscal and Tax Reforms.
Aduloju disclosed that NESG offered extensive analytics and modelling to measure the impact of the bills on the country’s economy.
He added:“We have simulated various scenarios, ensuring that these reforms simultaneously grow the tax net, improve tax justice, and reduce the complexity of Nigeria’s tax system”.
Also speaking,NESG’s Head of Research and Development,Joseph Ogebe,aligned with the positions of Aduloju on the tax reform bills and the expected impacts on Nigerians
He said that initial simulations using the 2019-2020 Household Survey data demonstrated significant gains for sub-national economies.