President Bola Tinubu has publicly opposed the National Economic Council’s recommendation to withdraw the proposed tax reform bills from the National Assembly.
The tax reform initiative, launched in August 2023, seeks to boost Nigeria’s economy by streamlining taxation, improving productivity, and attracting investments.
The reforms are aimed at simplifying tax obligations, harmonizing tax processes, and consolidating taxes into a unified structure, thereby enhancing efficiency and reducing administrative fragmentation, according to Nigerian Tribune.
The initiative comprises four key bills, which are designed to eliminate multiple taxation, enhance taxpayer compliance, and rebrand the Federal Inland Revenue Service as the Nigeria Revenue Service.
Additionally, the reforms establish a Joint Revenue Board to replace the Joint Tax Board and create an Office of Tax Ombudsman.
President Tinubu emphasized the need to update Nigeria’s tax laws to align with the nation’s development agenda, despite differing opinions. His administration has made economic reforms a priority.
Meanwhile, the World Bank has approved a $2.25 billion financing package to support Nigeria’s economic stabilization and growth efforts. This move is expected to bolster President Tinubu’s economic agenda.
The presidential spokesman, Bayo Onanuga, stated that President Tinubu remains committed to constructive dialogue and collaboration to ensure the success of these crucial tax reforms.
Following the meeting of the council,
Governor Seyi Makinde of Oyo State told correspondents that it decided to request the withdrawal as a result of the controversy the bill has engendered.
Makinde stated: “NEC today took a presentation from the Chairman of the Presidential Committee on fiscal policy and tax reforms. Their main focus is fair taxation, responsible borrowing, and sustainable spending.
“The council acknowledged that the country is underperforming on all indices as regards huge from major revenue sources, also tax to GDP ratio and so on.
“So, after extensive deliberation, NEC noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms.
“So, council, therefore, recommends the need to withdraw the bill currently before the National Assembly on tax reforms so that we can have wider consultations and also build consensus around these reforms for the benefit of the entire country and also to give people, for them to know the vision and where we are moving the country in terms of tax reform because there’s really a lot of miscommunication and misinformation.
“So, the bill will be withdrawn from the National Assembly. And then there will be consultations afterwards.”
