The Presidency has debunked claims that the tax reform bills are targeted at impoverishing the north.
The Presidency in a statement issued by the Special Adviser on Information and Strategy, Bayo Onanuga, also said the proposed bill does not favour Lagos
Onanuga further accused political actors and commentators have trying to “obfuscate the facts, deliberately misinforming and misleading the public”.
The Presidential spokesman argued that most reactions are not grounded in facts, reality, or sufficient knowledge of the bills. This is as he accused some commentators of inciting the people against lawmakers, while others have polarised one section of the country against another.
The statement read in part: “The tax reform bills will not make Lagos or Rivers more affluent and other parts of the country, as recklessly canvassed, poorer. The bills will not destroy the economy of any section of the country. Instead, they aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living.
“Contrary to the lies being peddled, the bills do not suggest that NASENI, TETFUND, and NITDA will cease to exist in 2029 after the passage of the bills.
“Government agencies, such as NASENI, TETFUND, and NITDA, are funded through budgetary provisions with company income tax and other taxes paid by the same businesses that are being overburdened with the special taxes”.
Onanuga said President Bola Tinubu embarked on the Tax and Fiscal Policy Reforms to streamline tax administration in Nigeria and make the operating environment conducive for businesses.
“For decades, businesses, investors, and private sector players in Nigeria have complained of being overburdened by a myriad of taxes and levies, including those earmarked to fund various government agencies and initiatives.
“The multiple taxes complicate the economic environment, making Nigeria uncompetitive for investment and preventing many businesses from growing or continuing their operations. Some companies have had to make the rational decision to relocate to other countries. We can not continue on this path or wait for 20 years if this country is to deliver the prosperity we need for our people.
“The proposal, as contained in section 59(3) of the Nigeria Tax Bill, only seeks to consolidate some of the earmarked taxes imposed on companies and replace them with a single tax to be shared with the key agencies as beneficiaries in a phased manner until 2030.
“The time frame offers ample opportunity for the affected agencies to explore other funding sources in addition to budgetary allocations in line with the constitution and international best practices”, the statement read.
Taz
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