PRESIDENCY LISTS 10 BENEFITS OF TAX REFORM BILLS, DIRECTS JUSTICE MINISTRY, NASS TO ADDRESS CONCERNS

 

President Bola Ahmed Tinubu.

President Bola Tinubu has instructed the National Assembly and the Ministry of Justice to collaborate in addressing concerns surrounding the recently proposed Tax Reform Bills. This directive, issued on Tuesday, comes in response to growing criticism of the bills, particularly from northern governors and other stakeholders who argue that the reforms could negatively impact their region and further burden Nigerians.

Temitope Ajayi, Senior Special Assistant to the President on Media and Publicity, emphasized in a statement on Wednesday that the administration was committed to refining the bills to ensure they are fair and beneficial to all.

“The government welcomes meaningful input and is fully committed to addressing any grey areas in line with established legislative procedures,” he said.

Minister of Information and National Orientation, Mohammed Idris, reiterated this stance, stating that the government has no ulterior motives and is open to constructive feedback. He assured Nigerians that President Tinubu has directed the Ministry of Justice and relevant officials to work closely with the National Assembly to address all concerns before the bills are passed.

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Despite the government's assurances, the bills have faced significant opposition, particularly from Borno State Governor Babagana Zulum, who has been vocal about potential drawbacks for northern states. Ajayi, however, urged critics to consider the broader benefits. "Human beings naturally resist change, especially when it involves uncharted territory. But we must not let fear of the unknown prevent us from exploring new possibilities," Ajayi stated.

Ajayi highlighted that the Tax Reform Bills aim to strengthen both federal and state finances, providing new revenue streams and reducing dependency on federal allocations. He listed ten key benefits of the proposed reforms for states:

1. Increased VAT Share: States will receive an additional 5% from the federal government’s current 15% share of VAT revenue.
2. Electronic Money Transfer Levy: Income from this levy will be transferred exclusively to states as part of stamp duties.
3. Modernized Stamp Duty Laws: The repeal of outdated laws and the introduction of simplified regulations will enhance state revenue.
4. Tax on Limited Liability Partnerships: States will gain taxing rights over these entities.
5. Tax-Exempt Bonds: State-issued bonds will enjoy the same tax-exempt status as federal government bonds.
6. Equitable VAT Model: A revised model for VAT distribution will lead to increased state revenue.
7. Integrated Tax Administration: This will provide states with better tax intelligence and strengthen tax capacity development.
8. Remittance Enforcement: The Accountant General will be empowered to deduct and remit taxes owed by federal institutions to states.
9. Autonomous State Revenue Services: Enhanced frameworks will grant states more control over their internal revenue services.
10. Lottery and Gaming Taxation: New provisions will introduce withholding taxes on lottery and gaming, benefiting states.

Ajayi concluded that these reforms are designed to make states economically stronger, urging governors to invest in infrastructure and human resources to capitalize on the opportunities the new tax regime presents. “This is not about stripping states of resources but empowering them to become economic powerhouses,” he said.