Strident opposition against the Tax Reform Bills by the 36 States Governors softened Monday night with supportive submissions made to some of their provisions by Nasarawa state Governor Abdullahi Sule during the Town Hall conversations on the bills, aired live by Channels Television.
At the three-hour discourse on the bills monitored by Blueprint, prominent Nigerians like former Speaker House of Representatives Hon Yakubu Dogara, Chief Executive Officer Global Investments and Trade Company Baba Yusuf, and Chairman Presidential Committee on Fiscal Policy and Tax Reform Taiwo Oyedele among others, asserted that the time for the reform is now.
At the event, Dogara, said the proposed tax reform will fetch the northern part of the country $25billion in years to come from livestock and exploration of mineral resources.
…Gov Sule
Addressing the gathering via the telephone, Governor Sule said if the Town Hall had taken place earlier, the governors wouldn’t have taken the position they took for withdrawal of the bills from the National Assembly few weeks ago.
He specifically told Nigerians that if the clarifications made by the presidential committee at the Town Hall conversation on new formula for distribution of Value Added Tax (VAT) among the three tiers of government, were made known to governors few weeks back, reservations expressed about the reform wouldn’t have arisen.
Sule said: “I have listened to clarifications made on perceived misgivings by the Governors Forum and some other critical stakeholders about the Tax Reform bills and getting inclined to the proposed reforms, particularly in the area of elimination of multiple taxation.
“Some of us who are governors today were in recent past key players in the companies that generate and pay heavy VAT to government coffers and clearly understand the lop-sidedness of proceeds sharing being aimed to correct now.
“Specifically, if Mr Taiwo Oyedele had informed the governors that a new model of 60% VAT distribution for better equity is part of the reform as he clarified at this Town Hall Conversation, there wouldn’t have been much disagreement from the onset, meaning that the conversation being done now was what the Governors’ forum requested for before forging ahead with processing the bill for consideration at the National Assembly.”
…Oyedele clarifies
Mr Oyedele had earlier clarified some misconceived provisions of the reform bills, explaining that the proposed tax reform was aimed at shared prosperity for all Nigerians by exempting the vulnerable or the poor from personal income tax and shifting that to those that are gainfully employed, earning up to N1.5million annually.
According to him, the proposed reform will address the most contentious issue of VAT distribution with new formula driven by equity and shared prosperity.
He said: “The current formula for sharing VAT among states is based on 20% derivation, 50% equality and 30% population. The tax reform proposes a different model of derivation which will attribute VAT to the place of supply and consumption rather than the current model which attributes VAT to the state where it is remitted thereby favouring states with companies’ headquarters.
“Further, derivation under the new model will account for 60% of VAT distribution for better equity and to discourage any state from seeking to administer VAT as a state tax, which will not only result in much lower revenue for all tiers of government but will impose a higher burden on businesses.”
He also debunked the insinuation that some provisions of the tax reform bills were aimed at liquidating public agencies like the National Agency for Science and Engineering Infrastructure (NASENI), Tertiary Education Trust Fund (TETFund) etc.
…Dogara, Yusuf explain gains
Also in an intervention, former Speaker of the House, Hon Dogara, said the proposed tax reform will fetch the northern part of the country $25billion in years to come from livestock and exploration of mineral resources.
Dogara said he had read through the four bills and discovered that they are well intended for economic revival of the country and wealth creation for Nigerians.
He admonished Northern leaders, particularly governors to wear the garb of leadership, and not that of regionalism and religiosity.
“Time is always rife to do right. Time to carry out the proposed tax reform based on the four bills I’ve personally read, is now and not tomorrow.
“For us in the North, the proposed reform is challenging us to look inward by keying into the $ 2.5trillion global Livestock market through the Livestock Ministry recently created.
“Leveraging on the Livestock market and managing other resources prudently, based on projections by experts, will in no distant time, make the North earn about $25billion from the $2.5trillion global livestock market.”
Similarly, Chief Executive Officer Global Investment and Trade Company, Malam Baba Yusuf, described the reform bills as well- envisioned for revival of the nation’s economy through competitive revenue generation and distribution.
“I’ve read the bills; they are well-envisioned for the country and Nigerians. Nigerians, particularly those of us from the North, should read the bills and not just listen to those misinforming them on the planned reform it is all about,” Yusuf said.
…Tinubu committed to accountability – Idris
In a related development, Minister of Information and National Orientation Mohammed Idris reiterated President Bola Ahmed Tinubu’s commitment to accountability in the tax reforms bills before the National Assembly.
In a statement he personally signed and made available to journalists Tuesday in Abuja, the minister said President Tinubu will always act in the interest of the Nigerian people.
The minister, while acknowledging the rights of citizens to robust debate on national issues, said there is a lot of debate and misinformation in the ongoing debate on the bill in the media and other public spaces.
Idris also cautioned against name-calling and injection of unnecessary ethnic and regional slurs in the debate.
He said: “The robust nationwide debate on the new tax reform bills currently before the National Assembly is welcomed, and commendable. It is very inspiring to see Nigerians from all walks of life coming out to express their views and opinions of these matters of critical national importance. This is the very essence and meaning of democracy.
“I call on all commentators and groups to keep up the spirit of informed engagement, and to strive to be respectful and understanding at all times despite the diversity of opinions. In the spirit of democratic engagement, there should be no room for name-calling, or for the injection of unnecessary ethnic and regional slurs into this important national conversation.
“Similarly, it is important to be aware that there is a lot of misinformation and fake news circulating around the tax bills and the overall reform agenda of the Tinubu Administration. “
Idris said the tax reform bills and other fiscal reforms of the Tinubu administration will not impoverish any state or region of the country, neither will they lead to the scrapping or weakening of any federal agencies.
He however said the reforms were geared towards bringing relief to tens of millions of hardworking Nigerians across the country.
Idris noted that they will empower and position states and the 774 Local Government Areas for sustainable growth and development.
The minister further said the government had nothing sinister to warrant the suggestion that the process is being rushed.
He said the federal government welcomes meaningful inputs that can address whatever grey areas there may be in the bill.
“In this vein, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed.
“We are indeed witnessing, at this moment in the history of Nigeria, the most far-reaching, impactful and beneficial set of fiscal reforms that Nigeria has seen in decades, ” he said.
Idris further assured that the Tinubu administration will continue to champion policies that close the loopholes and gaps through which Nigeria’s valuable public resources have been frittered away for decades.
“On top of this necessary foundation, the resources being conserved and realized from these reforms will be invested in critical infrastructure (healthcare, education, transportation, digital technology, etc) and in social investments that will benefit all Nigerians and ensure that no one is left behind. This is the promise and the reality of the Renewed Hope agenda,” he said.