The federal government has again allayed fears about the proposed tax reforms, saying that the bills are not against the northern part of the country as being speculated in some quarters.
The Minister of Information and National Orientation, Mohammed Idris, who gave the reassurance on Saturday, insisted that the overhaul of Nigeria’s tax system was long overdue.
This is just as the Nigerian Supreme Council for Islamic Affairs (NSCIA) on Saturday advised political leaders to defuse tension and end polarisation over the tax reform bills after a briefing by the National Security Adviser (NSA), Mallam Nuhu Ribaduand other members of the Federal Executive Council (FEC).
Speaking on Saturday in Kaduna at a public lecture with the theme: ‘Tax Reform: The Role of Public Relations in Fostering Constructive Dialogue for National Economic Renaissance’, organised by the Kaduna State Chapter of the Nigerian Institute of Public Relations (NIPR), Idris argued that the country’s tax administration system had become long overdue for reform, on account of design and implementation flaws as well as the general attitudes of taxpayers toward taxation.
“In my vision, we have something that the president is working on to turn things around. Let us support this. Let us also give our cooperation at all times.
“Of course, there are areas of misunderstanding or areas of concern. This is a democracy. I think the President, being a democrat himself, is always supportive of that kind of activity. But I think that we need to engage more and l hope that the synergy, as the president has said, will also help us in that direction. We want to say to all of you that because of the beginning of the new awakening that is going to happen, we will talk more and more, go on with more and more conversations, and engage for the benefit of our country,” Idris said.
The minister said the theme of discourse had brought to the fore the place of constructive dialogue as a vital pillar of democracy.
“The topic before us today is a sensitive yet important and inescapable one: taxation. It was the American statesman, Benjamin Franklin, who famously said that“In this world, nothing is certain except death and taxes.”
“All over the world, effective taxation is important as a source of financial power for governments to provide social services for their citizens
“However, there are plenty of reasons to believe and assert that Nigeria’s tax administration system has become long overdue for reform, on account of design and implementation flaws as well as the general attitudes of taxpayers toward taxation,” Idris said.
On his part, a foremost Islamic cleric, Sheik Ahmed Gumi, said the tax reform bill was not the most important problem confronting the country at the moment
Gumi described the tax bills as very positive things but insisted reforms in tax were not more important than other reforms like regional governance.
He described the efforts geared towards the exercise as “putting the cart before the horse”.
Also contributing to the debate, a social critic and former Kaduna Senator, ShehuSani urged the northern establishment not to constitute opposition to Tinubu’sadministration on account of the tax reforms.
He urged the North to look inward and tell itself the truth rather than use religious sentiment to destroy the bills.
“This is the first time that a deliberate attempt is made to reset the Nigerian economy that has become stunted and parasitic over the years.
“The choice is for us in the country to continue to do things in the way of the past or look at the future areas of concern for us. We should stop intimidating our lawmakers and be the first to always complain against any policy as anti-North,” Sani said.
He described the North as the country’s most blessed region that is sitting on untapped natural resources, adding the contentious bills will catalyse the economic development of the region.
The lead discussant, Professor Mustapha Bagudo, said the concern of the north on the tax reform bills stemmed from VAT and education levy.
He said if NASENI and TETFUND are scrapped, it would have adverse effects on the educational sector.
“The question that we need to discuss is, what is the implication of this? When you go to the higher institutions in Nigeria today, what you can see is the tax fund structure.
“If you remove the tax fund structure in this institution, those institutions will cease to exist. If by 2030, you say the tax fund will cease to exist, what will happen to the Nigerian high institutions?” he queried.
Bagudo, however, declared that the north was unnecessarily overheating the polity on the issue of VAT saying “We need to talk to ourselves”.
“In the long run, if we can put our house in order, we are going to benefit from this. My concern is if the 60 per cent is based on derivation or is it based on consumption. If it is based on consumption, northerners should not panic.
“Number one, they said 20 per cent based on equity. What is our concern on that 20 per cent based on equity? We are all part of Nigeria. They said 20 per cent based on population. Who is going to benefit when it comes to population? Northerners. Now, the third component is our concern.
“The concern is that if the 60 per cent is based on consumption, then why are we worried? Why are we worried? Because if it is based on derivation, now there is a problem because gradation will be affected. Maybe most of the companies are based in Lagos. That is our concern,” he said.
He also faulted the North on the issue of VAT from alcohol consumption.
He said any income generated from sale of alcohol is not allowed in Islam because the religion is against alcohol consumption.
In his remarks, the Governor of Kaduna State, Senator Uba Sani, represented by the Attorney General of the state and Commissioner for Justice, Sule Shuaibu, expressed happiness that President Tinubu had directed that more discussions be held on the tax reform bills.
After Briefing by Ribadu, Others, NSCIA Calls for Calm over Tax Reform Bills
Meanwhile, the NSCIA has advised political leaders to defuse tension and end polarisation over the tax reform bills, describing the raging dispute over the proposed laws as unnecessary and unwarranted.
The NSCIA gave the advice at the end of its 10th meeting of the Expanded General Purpose Committee (EGPC), where the National Security Adviser (NSA), NuhuRibadu, led a government delegation to brief the Muslim leaders on the controversial bills and other issues.
The meeting was convened by its President-General of the Council and Sultan of Sokoto, Alhaji Mohammed Sa’ad Abubakar, at the National Mosque in Abuja.
In a communique signed by its Secretary General, Salisu Shehu, the group called for “trust building, extensive consultation and mature and genuine dialogue on the tax reform bills”.
NSCIA acknowledged Ribadu’s explanations of the tax reform bills and the opportunity the presentation provided for Muslim leaders to engage government officials critically on the bills.
NSCIA noted that Nigerians are suffering under the harsh economic climate and urged the government at all levels to make the environment more conducive to business to hasten the ease expected from the reforms.
The Islamic body called for the revocation of the private airstrip licence approved for a religious leader, describing it as an aberration of the highest order that could threaten the peace and security of the country;
The NSCIA thanked the members of the Federal Executive Council and the National Assembly who attended the meeting.
Olawale Ajimotokan
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