The Tax Reform Bills will modernise the economy and enhance the standard of living of Nigerians, some stakeholders said yesterday.
The Nigeria Extractive Industries Transparency Initiative (NEITI) and Trade Union Congress (TUC) said the bills represented major transformative changes for the country.
Also, a former National Assembly member, Bamidele Faparusi, said only those opposed to the progress of the nation would stand in the way of the bills.
NEITI’s Executive Secretary, Dr Orji Ogbonnaya Orji, said the bills would modernise the tax system, streamline and broaden its administration to align with global best practices.
TUC commended the Federal Government and the Nigeria Governors Forum (NGF) for reaching an agreement on the bills.
The Labour Centre said the agreement reached by both parties captured some of the concerns it raised last year.
President, Trade Union Congress (TUC), Festus Osifo, said it was a relief that the agreement captured two of its concerns – Value Added Tax (VAT) and tax-funded agencies.
The TUC had raised concerns on VAT increase; tax exemptions limited to those earning N800,000 per annum and the gradual defunding of TETFUND and NASENI.
Osifo said: “Allowing the Value Added Tax (VAT) rate to remain at 7.5 per cent is in the best interest of the nation, as increasing it would place an additional financial burden on Nigerians, many of whom are already struggling with economic challenges. At a time when inflation, unemployment, and the cost of living are rising, imposing higher taxes would further strain households and businesses, potentially slowing economic growth and reducing consumer purchasing power.
“It is also good to note that both TETFUND and NASENI will remain a going concern, as these institutions have greatly impacted the country through their respective mandates. Both have respectively been instrumental in improving our tertiary education and the adoption of homegrown technologies to enhance national productivity and self-reliance. Their continued existence is vital for sustaining progress in education, technology, and economic development across the country.
“On a general perspective, we welcome the inclusion of the derivation component in the Value Added Tax distribution amongst the three tiers of government. When passed into law and properly implemented, it will encourage productivity at the sub-national level thereby moving us gradually from a total rent seeking economy to a derivation based system that will stimulate economic activities.”
