Real Reasons Tinubu Introduce Tax Reform Bill Finally Emerge
- Sunday Dare, President Tinubu’s Special Adviser, highlighted that the core reason for a tax reform in Nigeria
- Dare pointed to Tinubu's successful tax reforms as Lagos governor, which significantly increased the state’s revenue
- Contrary to fears, Dare assured that the tax reforms exclude individuals earning below ₦1 million and small businesses with profits under ₦50 million
President Bola Tinubu’s Special Adviser on Public Communication and Orientation, Sunday Dare, has shed light on the motives behind the tax reform bills submitted to the National Assembly.
Dare emphasized that the reforms aim to create a more efficient tax system to drive national development.
Source: Twitter
Legit.ng reports that the tax reform bills—comprising the Joint Revenue Board of Nigeria (Establishment) Bill, Nigeria Revenue Service (Establishment) Bill, Nigeria Tax Administration Bill, and Nigeria Tax Bill—faced stiff opposition when submitted for parliamentary deliberation.
Concerns have emerged, particularly from the Northern Governors Forum, which argued that some provisions, like those related to Value Added Tax (VAT), might adversely affect northern states. The National Economic Council (NEC) also recommended withdrawing the bills for further consultation, The Punch reported.
As reported by Premium Times, making clarifications on the tax reforms during a courtesy visit to Premium Times in Abuja on Thursday, November 28, Dare said:
“The freedom to generate revenue as a country is within the tax system. The president’s goal is to refine the tax structure and shift from voluntary to corporate taxation while blocking revenue loopholes.”
He noted that over 80 percent of Nigeria’s 61 existing taxes are redundant, necessitating a comprehensive overhaul.
Dare points to lessons from Lagos state
Dare drew parallels to the tax reform model implemented during Tinubu’s tenure as Lagos State governor between 1999 and 2007.
That model, he said, transformed the state’s internally generated revenue from N600 million to a robust system that serves as a benchmark today.
“That template still exists in Lagos State. To match Lagos State’s tax revenue, you would need to combine at least 15 states,” he said.
Despite these challenges, Dare assured that President Tinubu is closely following the debates and remains open to superior arguments.
“We have a president willing to listen. He is briefed daily on the arguments for and against the reform. We must trust our lawmakers to find common ground," he said.
Tax reforms wont burdening the poor, says Dare
Addressing fears of increased hardship, Dare clarified that the tax reforms would not impose additional burdens on the poor or small businesses.
“People earning below N1 million and businesses with profits under N50 million will not be taxed. The president’s philosophy is clear: he wants to tax prosperity, not the poor," he clarified.
36 state governors reject Tinubu's tax reforms
Meanwhile, Legit.ng reported that a decisive move, the 36 state governors of Nigeria under the aegis of the Nigeria Governors’ Forum (NGF), have called for the immediate withdrawal of the National Tax Reforms Bill.
The governors, speaking during Thursday's meeting of the National Economic Council (NEC), asked President Bola Ahmed Tinubu to withdraw the Reforms Bill from the National Assembly for more comprehensive consultations.
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Source: Legit.ng
