Chairman of the Presidential Tax Reform Committee, Taiwo Oyedele, has dismissed claims that the proposed tax reform bills are introducing an inheritance tax, noting that the proposed legislation only addresses family income taxation, which he said has long existed in Nigeria.

While the Manufacturers Association of Nigeria (MAN) commended the Federal Government for introducing four executive bills to reform administration in the country, it called for an end to the unlawful levies by non-state actors.

Also, a South-West socio-political group, Yoruba Ronu Leadership Forum (YRLP), backed the position of the Comptroller General of Nigerian Customs Service (NCS), Bashir Adeniyi, on the proposed tax reform bill.

Speaking at the public hearing on the tax reform bills, yesterday, Oyedele said the sections, which were misinterpreted as imposing an inheritance tax, merely clarified the taxation of family income derived from property rent.

His clarification comes amid concerns by some stakeholders that the reform bills would introduce an inheritance tax on those who inherit money or property from a deceased person.

Representative of the Arewa Consultative Forum (ACF), Yerima Ngama, said the provision was not acceptable to the North.

“Then we have this issue of inheritance tax. I know this issue has been mentioned all over. They should remove it from this law, leave it to states and local councils to administer because we have different cultures, different religions.

That one is not acceptable to our people,” the former Minister of State for Finance said. Oyedele maintained that it was Section 4 (3) of the Nigerian Tax Bill that was misinterpreted as introducing inheritance tax. He said the principle was not new and already enshrined in the Personal Income Tax Act under Section 2 (5).

MAN made the call, yesterday, at the second day of the public hearing on the tax bills in Abuja. President of MAN, Francis Meshioye, described the tax reform initiative as timely, noting that their effective implementation would improve the nation’s fiscal and tax administration system.

He said, “The tax bills are timely, and we believe that implementation of these reforms will bring about new expectations in tax administration across the country. However, we hope that the arm-twisting tactics of non-state actors will become a thing of the past.”

IN a statement, yesterday, President of YRLP, Akin Malaolu, said, “Following the objections raised by the Customs Service regarding the establishment of a new law to override existing laws enacted for the activities of Nigeria Customs Service NCS), we have cautioned Nigerians, that the tax reform bills have several trappings, one of which the Comptroller-General of Customs, Bashir Adeniyi, pointed out.”

The forum said a passage of that bill would amount to erosion of Customs personnel in all cadres. “For ease of understanding, the Lagos State model took away all the jobs from the clerical to the directorate when it was implemented. If these arrangements should succeed, then the resultant effects would be general inefficiency in Customs, Immigration and other related agencies.

“We must warn the propaganda team in the Presidency to focus not on their tricks but the new order in the management of the nation’s economy. We expect that the President’s economic team should see the need to cut down taxes, cut down interest rates and reduce the bank capital recently raised”.

We must drive our growth through private sector reforms and now that corruption has plagued the continued reliance on public sector reforms. That is what we are suggesting and not the opposite.”