The Federal Inland Revenue Service (FIRS) has allayed the fears of the North about the Tax Reform Bill (TRB) which has generated mixed feelings across Nigeria in the past months.
The North has not hidden its fear about the proposed bill saying it will further impoverish the region and reduce revenue generation among its states.
But the FIRS, at a meeting tagged “Roundtable Discussion on the Tax Reform Bill”, which was held on Tuesday in Abuja, said the North need not entertain any fear describing the TRB as a progressive bill geared towards the principle of equity and fairness.
The event also discussed how to foster a robust strategy for engaging communities and mobilising support for the bill’s passage.
Head, fiscal and tax reforms implementation division and special assistant, tax policy to executive chairman, FIRS, Olufemi Olarinde, while speaking at the event, said the bill will not only generate more revenue for all the states of the Federation but will also engender economic stability by taxing the well-to-do, the rich and the high-income earners to the benefit of the masses.
He said the Tax Reform Bill could not have come at the right time as there is the need for Nigerian tax laws to be amended for equal distribution of wealth and resources among the states.
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He stated that the Bill is not targeting any part of the country as being speculated while calling on people to trust the government on the proposed bill.
“I have always said that the bill is a progressive bill. A tax reform bill or taxation in itself is about principle of equity and fairness.
“So there is no bill or a tax provision that is developed without this consideration of equity and fairness. That simply means that what is good for a part of the country should also be good for everyone.
“What this bill has done is to ensure that the provision in it are equitable and considers every part of the country. This bill is a progressive bill, so there is no fear.
“Most of the things the Northern states have spoken about both from Mr Taiwo Oyedele’s team and those of us who have been engaging by the side have tried to explain them.
“It is just that there is a notion that people don’t trust government. But we believe that we can give government opportunity even at this time and let’s run this reform.
“The essence of this law is to engender economic stimulation. And when you say economic stimulation, what the President has continued to say is that we are not going to be taxing poverty, but we want to tax prosperity.
“We are not going to tax the seed but the fruit. What this bill is now doing is to ensure that the seed grows by exempting the low-income earners, people with N800,000 and below and that is where some states have complained that it would reduce revenue.
“What we are saying is that once these people (low-income earners) are allowed to grow, a lot of people will come more into the tax net and expands it.
“Also, more companies will come into the tax net even those that have not complied on their own will comply because of this reform.
“Nigeria tax laws have not been amended for many years and when there is the need to do it, let’s do it and see the outcome. I believe we should all support this and we will see the end.
“The reform is also digitizing tax administration which means with digital technology, you can capture many more people into the tax net and even this income collected even at the centre is what is shared across the three levels of government.
“So, the states have nothing to fear about because their revenue is definitely going to improve geometrical,” Olarinde stated.
Declaring the event open, the Chief of Staff to FIRS Chairman, Tayo Koleoso, said it underscores a shared responsibility of ensuring that the Nigerian public not only understands the Tax Reform Bill but also embraces its importance.
According to Koleoso, the Tax Reform Bill is designed to streamline tax processes, close revenue gaps, and foster a more business-friendly environment.
He added that Nigeria’s economic growth and national development rely heavily on an efficient and transparent tax system.
“For any reform to succeed, the people must understand it, trust it, and willingly comply. We must bridge the gap between policy and perception.
“Unfortunately, tax policies are often met with scepticism or misinformation, making it crucial for us to develop clear, relatable, and persuasive communication strategies.
“This is why today’s discussion is so important. We are not just here to talk about tax reform, we are here to strategize on how to engage communities effectively, how to demystify taxation, and how to create a culture of voluntary compliance. The success of this reform depends on our collective effort.
“People generally are suspicious of taxation and it is very difficult for them to embrace. So what we are saying is that when Nigerians understand this bill, they understand all the contents and everything that is about it, they can trust and even become an advocate for it. That is on one side.
“And the other side is that we are in a precarious situation in our country where we need more revenue generally and taxation helps the citizens to actually have a sense of rights to question how their money is being spent.
“It is a kind of participatory model when we pay our taxes.
“It is very important for all Nigerians to understand this law, how it impacts them, what are the positive areas of this law to our country’s development.
“And this signals another area where we are looking at all our communities across the country, North, South, East and everywhere to see the extreme positive parts of it to the development of our country,” Koleoso stated.
Moremi Ojudu and Abdullahi Tanko Yakasai, the Senior Special Assistant to the President, South West and North West respectively in separate interviews with Tribune Online said the messages about the Bill are being taken to the grassroots in various local languages for easy assimilation and clear understanding.
NIGERIAN TRIBUNE