TAX REFORM BILLS WON’T DISCARD TETFUND OR DRAIN NORTH – PRESIDENCY
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The Presidency has denied that the current Tax Reform Bills, which are pending in the National Assembly, will cause poverty in the northern region or that they would eliminate important government organizations like the National Information Technology Development Agency (NITDA), the National Agency for Science and Engineering Infrastructure (NASENI), and the Tertiary Education Trust Fund (TETFUND).
In a statement released Monday, Bayo Onanuga, the spokesperson for the state parliament, rejected what he called false narratives and misleading facts about the laws.
In recent weeks, there has been intense discussion about the tax reform measures.
Critics have accused the government of favoring certain areas, especially the north, and endangering the finance of crucial government programs.
The bills, which have passed second reading in the Senate, are the Joint Revenue Board of Nigeria (Establishment) Bill, 2024 -SB.583; The Nigeria Revenue Service (Establishment) BILL, 2024- SB.584; The Nigeria Tax Administration Bill, 2024-SB.585; and the Nigeria Tax Bill, 2024 – SB.586.
Some northern leaders have been opposed to the bills, which will see individuals earning below N1 million per annum exempted from tax.
One such leader is Governor Babagana Zulum of Borno State, who said findings revealed that only Lagos and Rivers will benefit from the reforms to the detriment of the north.
“Only Lagos will benefit from this scheme. But what we are telling them is to give us time. Why are we in a rush? Let us pause and have a deeper consultation because we are in a democracy,” Zulum said on Channels Television’s Politics Today on Sunday.
Zulum argued that the bills if passed into law, would further widen the economic divide between Lagos and other states.
“I am not an economist. But based on the calculations we did, only Lagos will benefit from this scheme. However, we have had a series of consultations with the FIRS team and had a meeting with the tax team of Lagos State. Lagos told me that they would lose…”
However, the Presidency denied these claims, pointing out that the tax reform measures will not increase the wealth of Lagos or Rivers and make other regions of the nation poorer, as has been rashly argued.
“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,” the presidency said.
Additionally, it stated that the laws do not imply that NASENI, TETFUND, and NITDA will cease to exist in 2029 following their passage, despite the false information being spread.
The president claims that government organizations like NASENI, TETFUND, and NITDA are financed by budgetary provisions using company income tax and other taxes paid by the same companies that are overtaxed.
The presidency statement partly read; “Since the public debate around the transformative tax bills before the National Assembly began in the last few weeks, various political actors and commentators have tried to obfuscate the facts, deliberately misinforming and misleading the public.
“Unfortunately, most reactions are not grounded in facts, reality, or sufficient knowledge of the bills. While some commentators have attempted to incite the people against lawmakers, others have polarized one section of the country against another.
“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.”
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