Following the controversy that have trailed the proposed tax reform bills by President Bola Ahmed Tinubu, some experts from northern Nigeria have thrown their weight behind the tax reform. This is even as they said the bills will boost the economy of the North.
Recall that President Tinubu had presented to the National Assembly tax reform Bills for approval and passage into law. The tax reform bills include the Nigeria Tax Bill 2024 and the Tax Administration Bill.
Others are the Nigeria Revenue Service Establishment Bill (meant to repeal the Federal Inland Revenue Service, FIRS, Act and create the Nigeria Revenue Service, NRS) and the Joint Revenue Board Establishment Bill.
However, the northern leaders, including traditional rulers and the Northern Governors Forum, NGF, have kicked against the bills. With claims that the bills would impoverish the Northern region of the country.
But contrary to the held views of the leaders, experts of northern extraction have stated that the bills would ginger development.
The experts made this assertion during a town hall meeting held in Abuja on Monday.
While dismissing the claims that the bills are anti-North, they stressed the bills would aid the development of the region.
The town hall meeting was organized by the Coalition of Northern Civil Society Groups in collaboration with Concerned Northern Professionals. And was chaired by the Vice Chancellor African School of Economics (Pan-African University of Excellence, Abuja), Prof Malfouz Adedimeji.
Speaking at the event, a chartered accountant, Dr Mustapha Abubakar, described the bills as very necessary. He noted that the tax reform bills are designed to expand Nigeria’s tax base. And also, to improve compliance and establish sustainable revenue streams.
He said, “The bills are expected to have a positive impact on the Northern economy. Potentially increasing government revenue, reduce poverty, and promote economic growth and development.
“One of the key benefits of the bills is the potential to increase revenue generation for State and Local Governments in the North.
“The proposed reduction of VAT distribution to the Federal Government from 15% to 10% and the increase in the share of State Governments from 50% to 55% will result in more funds being available for development projects in the North.
“This is expected to lead to improved infrastructure, education, and healthcare in the region. Another significant benefit of the tax reform bills to the North is the potential to promote economic growth and development.
“The proposed reduction of company income tax from 30% to 25% over two stages will make it easier for businesses to operate in the north. Thus, leading to increased investment and job creation.”
Another expert, who spoke at the event, Barrister Maxwell Batusan, noted the importance of the bills. He said the bills will promote synergy between the Federal, State and Local Governments.
Batusan who is a staff of the Kano State Internal Revenue Service, stated that “The Joint Revenue Board Establishment Bill intends to establish the Joint Revenue Board. This, he said will streamline tax administration and promote fairness and equity in the distribution of revenue.
“Additionally, the exemption of small businesses with annual turnovers of N50 million or less from paying income tax will provide a boost to entrepreneurship and innovation in the region.
“Overall, the tax reform bills have the potential to unlock the economic potential of the North. And also promote sustainable development in the region,” Batusan said.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms Taiwo Oyedele had on Monday listed 10 benefits of the tax reform bill.
Oyedele pointed out that low-income earners (N83,000 monthly) will be exempt from the Pay As You Earn, PAYE, tax.
According to him, PAYE will be reduced for those earning less than N1.7 million per annum.
He noted that households and individuals will enjoy zero Value-Added Tax on food, healthcare, education, and transportation.
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