I was just about setting out for my vacation, and taking some weeks off from issues pertaining to Nigeria – my fatherland – when a still small voice from nowhere kept ringing in my mind. It started and sustained a quarrel within me about my decision, insisting that I can’t be checking out like ‘Andrew’ at this time the nation and fellow citizens need me most to address issues of governance.
Left with no choice, I have decided to heed to the voice of my teeming readers who have argued that I must not fiddle like Emperor Nero while Rome was on fire – not with the debate on the proposed tax reforms bills introduced by President Bola Ahmed Tinubu which have been met with a mix of reactions from Nigerians.
While some have expressed concerns over the potential impact of the tax reform bills on the economy, others see it as a step towards promoting economic growth and development. The bill is a comprehensive piece of legislation that aims to reshape Nigeria’s fiscal framework and establish a new order in the country’s tax system.
Some experts see it as a step towards promoting economic growth and development in Nigeria. They argue that the bill will create a more favourable business environment, encourage investment, and stimulate economic growth.
The push and pull surrounding the bill has, indeed, been unnecessary. It’s unfortunate that the debate around the bill has been mired in controversy and misinformation, rather than a constructive and informed discussion.
The bill’s intentions are clear: to reform the tax system and promote economic growth and development. However, the debate has been hijacked by partisan interests and regional agenda, leading to unnecessary tension and conflict.
It’s essential to look beyond the noise and consider the facts. The Tinubu administration has been working towards promoting economic growth, stability, and development across all zones. The North East Development Strategy and Plan document presented to Vice President Kashim Shettima is a testament to the government’s efforts to address the unique challenges and needs of different zones.
Let’s focus on the positive changes that the administration is bringing about and support their efforts to unite the country and promote the greater good. By doing so, we can overcome the divisive tactics of regional and ethnic champions and work towards a brighter future for all Nigerians.
Unfortunately, failed politicians, otherwise known as political bandits, often try to latch onto contentious issues like the bill to gain some sort of advantage or relevance. This phenomenon is not unique to Nigeria, as politicians worldwide often engage in similar tactics. In the United States, for instance, politicians are known to use issues like partisan fighting, the high cost of campaigns, and the influence of special interest groups to further their agenda.
While there isn’t a country that operates solely on tax revenue, there are several countries, including the US, that have implemented effective tax systems that contribute significantly to their economic growth and stability.
For instance, Singapore has a highly efficient tax system, with a low corporate tax rate of 8.5% and a personal income tax rate that ranges from 2% to 22%. The country’s tax revenue accounts for around 70% of its total government revenue.
Similarly, Sweden has a tax-to-GDP ratio of around 44%, one of the highest in the world. The country’s tax system is designed to promote social welfare and economic growth, with a focus on taxation of income and wealth.
In the same vein, Denmark operates a tax system that is designed to promote economic growth and social welfare. The country’s tax revenue accounts for around 46% of its total government revenue, with a focus on taxation of income, wealth, and consumption.
New Zealand is another glowing example. The country has a tax system that is designed to promote economic growth and stability. The country’s tax revenue accounts for around 30% of its total government revenue, with a focus on taxation of income, wealth, and consumption.
Additionally, Switzerland has a federal tax system that is designed to promote economic growth and stability. The country’s tax revenue accounts for around 20% of its total government revenue, with a focus on taxation of income, wealth, and consumption.
Like the aforementioned countries, the Tinubu administration can be supported to harness huge resources from tax channels to fund the government instead of relying on external borrowing, which is detrimental to the country’s economy.
It’s crucial to encourage open and informed debate about the bill. Lawmakers should be willing to engage in constructive dialogue, listen to opposing views, and be open to compromise. By doing so, they can ensure that the bill is thoroughly scrutinized, and any concerns or issues are addressed.
Ultimately, the goal should be to create a well-informed and effective piece of legislation that serves the greater good. If lawmakers are indeed being mischievous or ignorant, it’s up to their colleagues, the media, and the public to hold them accountable and promote a more constructive and informed debate.
President Tinubu’s tax reforms bills are a game-changer for Nigeria’s economy. This move is expected to generate more revenue for the government, which can be used to fund public goods and services. The bill also proposes a 5% excise duty on telecommunications services, which will help to increase revenue generation.
Small businesses with annual turnovers below ₦50 million will be exempted from corporate income taxes, which will alleviate financial burdens and foster growth. On the other hand, larger corporations will be subject to a progressive tax structure, ensuring they contribute a fair share to national revenue.
The state stands to benefit significantly from the tax reforms bill when it passes into law. A more efficient tax system will help the state generate higher revenues, which can be used to fund public goods and services, such as infrastructure, education, and healthcare.
It’s unfortunate that some regional and ethnic champions are spreading misinformation and causing confusion among the people. However, Vice President Shettima has reassured the nation that President Tinubu genuinely means well for all Nigerians, including the North and every other parts of the country. In a recent meeting with the North East leaders of thought, Shettima emphasised that he has seen the president’s commitment to the nation’s well-being and will continue to advocate his vision.
But the way some governors are going about the tax reforms process smacks of sabotage. Curiously, among the governors, three of them from the North spent N4.9 billion in nine months after recording zero investments in their states.
Another report has it that a total of 29 governors also spent N1.994 trillion on recurrent expenditure, including refreshments, sitting allowance, traveling and utilities in the first nine months of 2024. It is also confirmed that some states obtained N533.29bn loan, while they spent N658.93bn to service debts owed to local and foreign multilateral creditors. So, you expect such political cabals living a fake life with funds from the federal allocation to support tax reform bills?
Ironically, no senator or member of the House of Representatives has been assisted with funds to execute constituency projects by these governors despite the huge funds at their disposal. Thanks to my friends in the upper chamber from the Southsouth for his absolute loyalty. Let’s join hands in supporting President Tinubu and our country. We expect to see all the noise makers use their shrill voices in supporting government in fighting corruption and terrorism.
For the governors and lawmakers mobilising against the bill, it’s possible that they may have genuine concerns or reservations about its impact or provisions. However, if they are indeed being mischievous or ignorant, it’s essential to consider the potential motivations behind their actions.
Mischief could imply that these governors and lawmakers are intentionally trying to sabotage the bill for personal or political gain. Perhaps they have a vested interest in maintaining the status quo or are trying to score cheap political points with their constituents by opposing the bill.
Ignorance, on the other hand, suggests that the dissenting governors and lawmakers may not fully understand the bill’s provisions or implications. This could be due to a lack of information, inadequate briefing, or insufficient expertise.
In conclusion, it’s time for stakeholders to take a step back, calm down, and engage in a rational and informed discussion about the bills’ merits and demerits. By doing so, they can identify areas of common ground and work towards finding solutions that benefit everyone.
The push and pull has only served to delay the bills’ passage and create uncertainty for businesses and citizens. It’s essential to put aside partisan interests and work towards the greater good. The country needs a stable and effective tax system, and the bill can provide that – if only the debate can be conducted in a more constructive and respectful manner.
