Partial Implementation Will Render Tax Reforms Ineffective, Yusuf Warns

Baba Yusuf, CEO of Global Investment and Trade Company, has shared critical insights on President Bola Ahmed Tinubu’s proposed tax reforms, emphasising the need for strategic implementation and stakeholder engagement. 

Speaking on ARISE NEWS on Sunday, about the reform bill, Yusuf cautioned against partial implementation of the reforms, stressing that selective adoption of measures would render the reforms ineffective. 

“We are very good with bringing up policies but the implementation is always the problem. The fiscal policy and tax reform will only be successful if it goes pari passu with critical suucess factors. 

“We hope this policy will not be one that when enacted will not be such that they will select some and implement and abandon the others in which case, it will not be effectual.”

He also called for alignment between fiscal policy and fiscal discipline.

“Unless there is an alignment between fiscal policy and fiscal discipline, there is no amount of reforms you will bring that will push us forward.

One of the pressing issues Yusuf raised was tax compliance among big businesses and influential individuals.

“With regards to taxing the big businesses, which I am a very big proponent of, most of those big businesses and the big names, the politicians don’t pay taxes. 

“How are we going to make sure that they pay those taxes and how do we put safe guards so that they don’t pass those costs back to the populace”

However, he emphasised the importance of consulting critical stakeholders and educating the public to address misinformation and misunderstandings about the reforms.

He expressed concern that incomplete information and misinformation were fueling public skepticism. 

“There is a lot of engagements that have been going on but I think one of the key areas that was missed was sensitizing Nigerians over and above politicians and public office holders because indeed this optics is what some of the people that are not proponents is the reforms are using,and of course Nigerians are now concerned especially if you talk about the northern part of the country because the feedback people are getting maybe, are not the feedback they are supposed to get. 

“There is issue of lack of complete information, there is the issue of misinformation and that should be corrected by the fiscal policy and tax reforms committee.”

Reflecting on the timing of Tinubu’s reforms, including the removal of fuel subsidies and the floating of the naira, Yusuf advocated for a more structured approach. 

Yusuf acknowledged that public concerns, especially about the potential impact on vulnerable groups, are genuine and require proactive measures from the government.

“I believe that reforms should be well thought out and then there should be sequencing of the implementation of reforms and there should be what is called building blocks. 

“I expect to see the consequence management action plan by government to pacify the fears of people with regards to the impact because the concerns of the people are genuine.”

Chioma Kalu

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