The Chairman of Senate Committee on Finance, Senator Sani Musa, has assured Nigerians of the National Assembly’s determination to ensure that the Tax Reform Bills now being deliberated on will be rigorously scrutinized to ensure that when eventually passed and signed into law, they will impact positively on the nation’s economy with the attendant socioeconomic benefits for taxpayers in the country.
The lawmaker made the pledge on Tuesday at the end of a two-day public hearing on the proposed Tax Reform Bills during which recommendations of stakeholders and concerned Nigerians were submitted to the National Assembly for consideration.
According to him, the tax reform bills aim to enhance the Nigerian fiscal system in line with global best standards to improve the efficiency of tax collections, improve revenues and promote the judicious utilization of the tax revenues for national development.
The committee’s chairman thanked all those who made inputs during the legislative process and enriched the conversations on the tax reform bills.
He said: “Your recommendations have enriched our discussions and will go a long way in shaping tax policies. We have critically examined key aspects of our tax system identifying areas of improvement to enhance revenue generation, promote investments, and ease the burden of taxpayers.
“The submissions made here will be thoroughly reviewed and considered as we refine these bills to ensure they serve the best interest of all Nigerians.” Musa added.
The legislator assured Nigerians that the committee would do its best in terms of its recommendations to the National Assembly on the four tax reforms bills submitted by President Bola Tinubu for passage
Over the past months, the tax reforms bills have elicited public debates as regarding the expected gains and pains, particularly among political leaders, civil society groups, organized private sector and individual tax payers.
However, despite the raging controversies on the proposed fiscal legislations, the Presidency and the Presidential Committee on Tax Policy and Fiscal Reforms have consistently assured Nigerians and other residents in the country that the passage of the bills and final enactment into laws would go a long way in ensuring fairness in the tax system and improved revenue for the country.
For instance, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, who shared his views on the implications of the passage of the tax reform bills for the country’s fiscal system at a forum last weekend in Abuja, assured Nigerians that passage of the Tax Reforms Bills remained the most potent fiscal option to ensure improved efficiency in Nigeria’s tax administration and catalyze the nation’s politico-economic growth in the years ahead.
The tax expert, who shared this view in his keynote address at the Finance Correspondents Association of Nigeria’s (FICAN’s) Abuja Annual General Meeting (AGM), maintained that the tax reform bills also had the potential to contribute to shared prosperity, especially as the measures would help in broadening the nation’s tax revenue base and enhance tax compliance rate nationwide.
While clarifying that the proposed tax rates in the bills will not worsen the current tax burden of taxpayers but significantly reduce it by reducing to the barest minimum current regime of multiplicity of taxes, the committee’s chairman pointed out that “revenue mobilization for development through broadening the tax base and enhancing compliance is projected to significantly increase government revenues.”
According to him, if enacted, the bills will enable all the tiers of government experience macro-economic stability, improved revenue mobilization, lower costs of doing business and cost of debts, healthy fiscal balance, improved tax to GDP ratio, and enhanced credit rating, amongst other benefits
He further clarified: “Revenue mobilization for development through broadening the tax base and enhancing compliance is projected to significantly increase government revenues.
“Allowing tax evasion to continue is itself a disincentive to the honest people who are doing their business and paying their taxes.
“A transparent and simplified tax regime will position Nigeria as a more attractive destination for both domestic and foreign investment, fostering industrial expansion and technological advancement”, Oyedele added.
The seasoned tax professional pointed out that the proposed tax structure would reduce inequality by ensuring that high-income earners contribute their fair share to the tax basket even as would provide incentives and exemptions to support vulnerable groups and small enterprises.
