Tax reform bills won’t scrap TETFUND or impoverish North – Presidency

The Presidency has rejected claims that the ongoing Tax Reform Bills, currently before the National Assembly, propose the scrapping of key government agencies such as Tertiary Education Trust Fund (TETFUND), National Agency for Science and Engineering Infrastructure (NASENI) and the National Information Technology Development Agency (NITDA) or that they will impoverish the northern region.

The state house spokesperson, Bayo Onanuga, on Monday, in a statement, dismissed what he described as misleading information and false narratives surrounding the bills.

The tax reform proposals have been the subject of heated debate in recent weeks, with critics accusing the government of targeting specific regions, particularly the north, and jeopardising the funding of important government initiatives.

The bills, which have passed second reading in the Senate, are the Joint Revenue Board of Nigeria (Establishment) Bill, 2024 -SB.583; The Nigeria Revenue Service (Establishment) BILL, 2024- SB.584; The Nigeria Tax Administration Bill, 2024-SB.585; and the Nigeria Tax Bill, 2024 – SB.586.

Some northern leaders have been opposed to the bills, which will see individuals earning below N1 million per annum exempted from tax.

One such leader is Governor Babagana Zulum of Borno State, who said findings revealed that only Lagos and Rivers will benefit from the reforms to the detriment of the north.

“Only Lagos will benefit from this scheme. But what we are telling them is to give us time. Why are we in a rush? Let us pause and have a deeper consultation because we are in a democracy,” Zulum said on Channels Television’s Politics Today on Sunday.

Zulum argued that the bills if passed into law, would further widen the economic divide between Lagos and other states.

“I am not an economist. But based on the calculations we did, only Lagos will benefit from this scheme. However, we have had a series of consultations with the FIRS team and had a meeting with the tax team of Lagos State. Lagos told me that they would lose…”

The Presidency, however, said that these allegations were false, noting that the tax reform bills will not make Lagos or Rivers more affluent and other parts of the country, as recklessly canvassed, poorer.

“The bills will not destroy the economy of any section of the country. Instead, they aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living,” the presidency said.

It also added that contrary to the lies being peddled, the bills do not suggest that NASENI, TETFUND, and NITDA will cease to exist in 2029 after the passage of the bills.
According to the presidency, government agencies, such as NASENI, TETFUND, and NITDA, are funded through budgetary provisions with company income tax and other taxes paid by the same businesses that are being overburdened with the special taxes.

The presidency statement partly read; “Since the public debate around the transformative tax bills before the National Assembly began in the last few weeks, various political actors and commentators have tried to obfuscate the facts, deliberately misinforming and misleading the public.

“Unfortunately, most reactions are not grounded in facts, reality, or sufficient knowledge of the bills. While some commentators have attempted to incite the people against lawmakers, others have polarized one section of the country against another.

“The tax reform bills will not make Lagos or Rivers more affluent and other parts of the country, as recklessly canvassed, poorer. The bills will not destroy the economy of any section of the country. Instead, they aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living.

“Contrary to the lies being peddled, the bills do not suggest that NASENI, TETFUND, and NITDA will cease to exist in 2029 after the passage of the bills.

“Government agencies, such as NASENI, TETFUND, and NITDA, are funded through budgetary provisions with company income tax and other taxes paid by the same businesses that are being overburdened with the special taxes.”