The Fiscal Responsibility Commission has called for widespread support across Nigeria’s geopolitical zones for the controversial Tax Reform Bills currently under consideration in the National Assembly.
This appeal was made by the Commission’s Chairman, Victor Muruako, during an interaction with academics and journalists at the Fellowship Lecture and Investiture Ceremony of the Capital Market Academics of Nigeria, held on Monday at the NDIC Academy in Abuja.
The Tax Reform Bills, which were developed by the Presidential Fiscal Policy and Tax Reforms Committee, have faced strong opposition from lawmakers and other stakeholders, resulting in the suspension of legislative action on the bills. The bills in question include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; and the Nigeria Tax Bill, 2024.
Muruako assured that a thorough analysis of the bills by the Fiscal Responsibility Commission showed that they do not favor any particular region or section of the country. In a statement released by the Commission on Tuesday, Muruako urged all stakeholders across the geopolitical zones to support the bills due to their transformative potential, which he believes will benefit every Nigerian.
“The bills will foster a more equitable distribution of resources among Nigeria’s federating states,” Muruako said. He also emphasized that the proposed reforms are designed to benefit all Nigerians, particularly low-income earners and micro, small, and medium-scale enterprises (MSMEs).
Muruako outlined several key benefits of the reforms, including tax relief for low-income earners, with individuals earning less than N1.7 million annually being exempt from higher income taxes. Businesses with turnovers below N50 million will also be exempt from tax, and over 90 percent of small businesses will no longer be required to pay profit tax.
Additionally, the reforms introduce a simplified tax system, reducing the number of taxes and levies, which is expected to increase revenue for sub-national governments. These governments will receive a larger share of Value Added Tax (VAT) revenue, contributing to improved ease of doing business in the country.
Muruako expressed optimism that the tax relief for low-income earners would boost savings and capital formation at the household level. He believes that this increase in household investments, driven by higher savings, will contribute to the sustainable growth of Nigeria’s economy. The reduced tax burden on small businesses is also expected to provide MSMEs with more room to grow, ultimately leading to an increase in the nation’s GDP in the near future.
Regarding the ongoing controversies surrounding the bills, Muruako praised President Bola Tinubu for his democratic approach, allowing for further dialogue and discussion on the proposed reforms.
