Tax reforms: Reps to prioritise best interest of all Nigerians says Abbas

Abbas made the commitment on Monday in Abuja at a stakeholders interactive session on the bills in Abuja.

The News Agency of Nigeria (NAN) reports that the bills are: Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill and Joint Revenue Board Establishment Bill.

NAN also reports that the bills seek to provide fiscal framework as well as clear and concise legal frameworks for all taxes in the country and reduce disputes in tax administration

NAN recalls that all the 36 state governors have, however, demanded for the withdrawal of the proposed legislations, citing the need for more consultations and public inputs.

Abbas said that the controversies surrounding the bills are a reflection of their importance saying that debates on bills are healthy and necessary in a democracy.

He added that the session was to channel those controversies into productive outcomes saying that it is critical that the House listens to diverse perspectives, asks probing questions, and seeks clarity on any unclear provisions.

“Let me be clear: the house has not yet taken a definitive position on these bills. Our role is to scrutinise them thoroughly, ensuring they align with the best interests of our constituents and the nation at large. We owe this duty to Nigerians.

“However, as representatives of the people, we must approach these reforms thoughtfully, understanding their potential implications for every segment of society.

“Taxes should be fair, transparent, and justifiable, balancing the need for public revenue with the burdens they impose on individuals and businesses.

“In every modern state, taxes are the bedrock of public revenue, providing the resources required to deliver education, healthcare, infrastructure, and security.

“Yet, Nigeria, in spite of being Africa’s largest economy, struggles with a tax-to-GDP ratio of just 6 percent—far below the global average and the World Bank’s minimum benchmark of 15 per cent for sustainable development.

“This is a challenge we must address if we are to reduce our reliance on debt financing, ensure fiscal stability, and secure our future as a nation,” he said.

In his remarks, the Deputy Speaker, Rep. Benjamin Kalu assured Nigerians that tax reform bills will undergo public scrutiny to allow citizens evaluate them and make input.

Kalu emphasised the need for clear articulation of necessary provisions to ensure equity, economic growth, inclusivity and also the promotion of sustainable development for the nation.

Kalu added that the reforms should be rooted in the collective aspiration to create a tax regime that works for all Nigerians, regardless of their economic standing.

The deputy speaker, however, said that more insight into how the tax reforms incentivise the digital economy, support small businesses and low-income households, and more importantly, how the Zero-Rated Value Added Tax works or should work was expected from all the stakeholders.

Earlier, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said that the proposed tax reform bills before the National Assembly were not aimed to undermine any region of the country.

Oyedele said that the proposal would only ensure efficiency and give more revenue to states where goods and services are consumed.

He said that under Section 40 of the VAT Act, VAT revenue is allocated 15 per cent to the Federal Government, 50 per cent to the States and FCT, and 35 per cent to Local Governments,

According to him, there is no negative thinking about any region or anything.

On his part, the Chairman of the Federal Inland Revenue Service (FIRS), Mr Zack Adedeji said the agency was awaiting the outcome of the bills.

He said the responsibility of the FIRS was to implement policies and laws passed by the National Assembly.

Oyedele, said there was nothing to fear in the proposals as they are in the best interest of Nigeria, especially states and local governments. (NAN)