A former president of the Nigeria Bar Association (NBA), Dr. Olisa Agbakoba (SAN), has canvassed support for Tax Reform Bills, describing it as a massive incentive to the working class.
The rights activist also called for devolution of powers to all the three tiers of government and explained the north’s opposition to the initiative.
Agbakoba spoke Monday in an e-statement sent to Blueprint.
He said: “It is time to devolve powers to all three governments in Nigeria to promote efficiency and development! As we all know, politically, Nigeria is overcentralised. Everything is decided in Abuja to the great detriment of national development. This reality explains why the Tax Reform Bill has run into opposition. The Tax Reform Bills are good from a revenue point. More money is good, especially as the Tax Reform Bills are focused on corporate entities and the upper class super rich. In fact, the bill is a massive incentive to the working class. But the challenge is that the distribution formula is said not to favour Northern Nigeria.
“Northern Nigeria may have a reasonably arguable case. We have always distributed revenue with clear principles. So, the north asks why the revenue sharing formula in the proposed Tax Reform Bills is not the same as that for sharing oil revenue? This is a huge problem.
“We will continue to grapple with how to distribute revenue equitably unless and until Nigeria politically devolves revenue collection to the states which implies massive devolution of powers from the centre. The North for example has capacity to generate massive revenue from mechanisation of agriculture, but it has not, as there are no strong incentives.
“My honest opinion is that it is more than past time to devolve political and economic power from federal to state and also from state to local government. This is the only way we will grow the economy from sharing revenue to generating revenue. I strongly believe consumption tax goes to states where the revenue is generated. But the north says that to change the system in the middle of the game is unfair. This needs careful review. I cannot understand why the federal government is concerned with controlling marriage and drivers’ licenses or basic primary and secondary education, to the detriment of even distribution of political power.”
