Mr. Taiwo Oyedele has stressed the urgency of enacting tax reforms in Nigeria due to widespread economic struggles. He defended the proposed reforms against criticisms from Governor Zulum, advocating for a 60 percent derivation to improve VAT equity. Despite allegations of rushing legislation, Oyedele emphasized the need to alleviate poverty and support small businesses suffering under numerous taxes. The debate highlights regional disparities and the complexities of tax policy in Nigeria.
Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has emphasized the urgent need for tax reform in Nigeria, citing the increasing struggles of the populace. Speaking during an interview with Arise News, he responded to the concerns raised by Borno State Governor, Professor Babagana Zulum, regarding the proposed Tax Reforms Bills currently under consideration in the National Assembly. Oyedele advocated for a 60 percent derivation to enhance equity in VAT distribution and stimulate economic growth throughout the country.
In his criticisms, Governor Zulum expressed concern over a perceived rush to enact these reforms, suggesting that the bills might disproportionately benefit Lagos and Rivers States. Zulum urged the Federal Government to reconsider the legislative process, indicating the necessity for extended consultations to address misconceptions about the tax regime. Refuting the notion of haste, Oyedele highlighted the pressing economic conditions faced by Nigerians, pointing to high poverty rates, inflation, and the excessive bureaucratic tax burden on small businesses.
He stated, “Our small businesses are burdened with over 60 official levies, taxes, and more than 200 unofficial ones. We are struggling just to help people feed themselves because inflation is escalating.” His call for swift action echoes the urgency seen in emergency responses during crises like the COVID-19 pandemic, where laws were rapidly passed to provide relief.
Oyedele noted that the bills have undergone substantial deliberation over the past year and reiterated the importance of finalizing them to alleviate the severe economic challenges faced by many Nigerians. As the bills await scrutiny in the National Assembly, Oyedele encourages continued dialogue with stakeholders and acknowledges the unexpected resistance from some regional elites. The proposed changes aim to revise the current VAT distribution framework, which allocates revenue according to criteria that include population equality and local government need, indicating the complexity and sensitivity of the tax reform efforts.
The discussion surrounding tax reforms in Nigeria arises amidst a backdrop of significant economic hardship faced by many citizens. With a rising poverty rate and high inflation, particularly affecting small businesses, there is an urgent call for legislative intervention to alleviate these challenges. The proposed Tax Reform Bills, which include a 60 percent derivation in VAT allocation, aim to address inequities in the existing tax framework that critics argue favors economically prosperous regions. The debate is further complicated by regional tensions regarding the distribution of VAT revenue, highlighting the need for inclusive consultation in policy formulation.
In conclusion, the urgency for tax reform in Nigeria, as articulated by Mr. Taiwo Oyedele, is underlined by the economic distress affecting the majority of citizens. While the proposed reforms seek to promote equity in VAT distribution and support economic growth, they have sparked controversy and resistance, particularly from northern stakeholders. Oyedele’s firm stance on the necessity of these reforms reflects a broader desire for swift governmental action to address the multidimensional poverty and inflation that many Nigerians encounter daily.
Original Source: punchng.com
