As the National Assembly considers the proposed tax reform bills, a member of the House of Representatives, Dr. Ghali Mustafa Tijjani, has warned against imposing more taxes on Nigerians.
In an interview in Abuja, he insisted that the proposed tax reform bills are not only capitalistic in nature but would surely render ordinary Nigerians poorer.
Tijjani, representing Gaya/Albasu/Ajingi federal constituency of Kano State on the platform of the opposition New Nigeria Peoples Party (NNPP), urged the authorities to explore
6 other avenues to raise revenue for the country.
The lawmaker stressed the need for the authorities to block revenue leakages as well as harness the vast mineral resources spread across the country to achieve the objective.
Tijjani, who threw his weight behind the position of the Northern Governors Forum (NGF) on the tax reform bills, called on the authorities to place emphasis on putting in place infrastructure rather than embarking on wasteful expenditures on projects that are of no immediate benefit to Nigerians.
Calling for tax holidays for Nigerians, he faulted the arguments that low-income earners would be exempted from bearing the burden of the proposed tax reforms in the country.
He said, “For you to tax people, they need to have the purchasing power. So currently, the policies of this current government are too harsh and against the interests of the masses. For them to bring tax reform bills, I think they are wrong.
“They should be thinking of even giving tax holidays, whereby small and medium companies could at least have a space to generate capital and to employ labour, which will give our people the opportunity to be well-employed and also have the purchasing power to even contribute to the economy.
“People are now hungry. People don’t have employment. In fact, look at the government agencies. They are all retrenching workers. How do you think the new tax reform system will not be transferred to the final consumer?
“The four bills, to me, this is the wrong time and ill-timed to bring them. For a simple reason, the policies of the current government have not helped the poor. Similarly, there are two major areas of concern: the derivation as well as the increase in the VAT system. You see, if you take the VAT, Section 146 talked about the increase in the VAT from 7.5% to 10%, to 12%, and to 15% by 2030.
“And nobody will tell you that this will not be transferred to the final consumer no matter what. Yes, you have talked of exemption, exemption for some certain cadre or scale or income, but the final consumer or the companies will transfer the VAT or the taxes to the final consumer.
“The economy is in a mess. And the inflation is serious in the country. And you remove the subsidy without even thinking how to support the inflation. At the same time, like I said, the government, apart from blocking leakages, should also think of tax holidays. At the same time, the government should also stop unnecessary expenditure.
“I can give you a typical example. You took 15 trillion to go and start maybe Lagos-Calabar Coastal Road. This is unnecessary expenditure. Nigerians are hungry. Do investment in small-scale businesses whereby Nigerians will get employment. By the time that everybody is employed, skills can contribute; therefore, there is no issue to do unnecessary expenditures. So there is mismanagement in this current government.”
