Why we resist tax reform bills, by NLC
• UNDP, NES tell Tinubu to consult more in pushing legislation
The Nigeria Labour Congress (NLC) has, again, called for the withdrawal of the tax reform bills until a public hearing is held or greater inclusivity in the tax committee.
Also, the United Nations Development Programme (UNDP) Resident Representative in Zimbabwe, Dr Ayodele Odusola, and President of the Nigerian Economic Society (NES), Prof Adeola Adenikinju, have called on President Bola Tinubu to consult more and present the benefits of the tax reform bills to Nigerians for them to see value in them.
The tax reform bills, which include the Nigeria Tax Bill (NTB), Nigeria Tax Administration Bill (NTAB), Nigeria Revenue Service Establishment Bill (NRSEB) and the Joint Revenue Board Establishment Bill (JRBEB), aim to address inefficiencies, broaden the tax base, increase government revenue and stimulate economic growth.
Head of Information at the NLC, Benson Upah, stated, yesterday, that past experiences with agreements and dialogues with the Federal Government taught the union to be cautious.
In a chat with newsmen, he argued that the tax reform bills were targeted at extorting Nigerian workers across all sectors of the economy. According to Upah, taxation plays a critical role in a country’s development. However, he emphasised that while the reforms were intended to boost revenue generation, consequences must be anticipated and addressed.
Upah said, “On the issue of the tax reform bills, specifically concerning workers, the bill claims it will shield low-income workers from the impact of taxes; people earning less than N1 million. I am afraid to say, there is hardly any worker in the formal sector earning less than N1 million. So, that benefit exists only in principle. The second claim, that linking taxes to social security benefits will be beneficial to workers is, I must add, a mirage, given our experiences from the past.
“But aside from this, these proposed tax reform bills, as they affect workers, will tax workers’ benefits, allowances, housing and more. This will severely impact Nigerian workers because, generally speaking, what they earn at the moment is nothing to write home about.”
He reiterated that taxing workers’ allowances and other benefits would make them poorer.
ADENIKINJU and Odusola made the call while speaking at the first Faculty Distinguished Personality Lecture of the Faculty of Economic and Management Sciences of the University of Ibadan, with the theme, ‘Future of Development Finance in Africa’ and launch of the book, ‘Reminiscences’.
The book chronicles the Economics Department of UI. On the raging issue of the tax reform bills, Odusola and Adenikinju urged Tinubu to consult stakeholders widely for them to embrace the reform.
Odusola said: “When it comes to the issue of tax reform bills, the President has to be very consultative. He should consult people to see the value in the tax bills. If you don’t consult people and make them see values in them, even if it is the best, they will not take them seriously.”
Adenikinju said tax reform was key to getting the right revenue. He, however, called for more consultations and transparency in the reform and tax administration.
While welcoming guests and alumni to the lecture, the Dean of Faculty of Economic and Management Sciences, Prof Abiodun Folawewo, stated that adequate financial resources were needed to build the ‘Africa We Want’.
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