Sen. Ali Ndume has stated that the new tax bills currently in the National Assembly are dead on arrival if President Tinubu does not withdraw them.
He stated this during an interview on Channels Television where he advised the President to consider the recommendations of the Northern Governors and also the National Economic Council (NEC).
According to him, the current situation with hardship in the country does not warrant the introduction of new taxes.
He said, “My advise is that as the Northern Governors Forum and the National Economic Council (NEC) have said, the President should do more consultation and carry Nigerians and the public along. But if he goes on like that, I can tell you it will be dead on arrival.”
He further criticised the proposed increase in VAT rate noting that Nigerians cannot afford to pay such high taxes at a time when companies are leaving the country.
Also, the former senate whip stated that he is currently campaigning against the tax bills among legislators in the Senate and he is gaining support.
Opposition to new tax bills
The proposed tax bill which aims to deploy a derivation-based model for Value Added Tax (VAT) distribution has generated heated conversation and opposition especially from politicians and leaders of Northern extraction.
- Last week, the Northern Governors Forum voiced their opposition to the bill calling on legislators from the region to oppose any bill against the interest of Northerners across the country.
- Furthermore, the National Economic Council (NEC) comprising the 36 state Governors and chaired by the Vice President called for the withdrawal of the bills and proper consultation before proceeding to the National Assembly.
- However, President Tinubu disregarded the recommendation from the Northern Governors Forum and the NEC stating that it is a legislative process, and inputs could be added during public hearings.
President Tinubu’s tax reforms
Last year, President Tinubu set up the Presidential Committee on Fiscal Policy and Tax Reforms chaired by former tax leader at PwC, Mr. Taiwo Oyedele.
The committee is taxed with reforming Nigeria’s tax system to allow for better administration and reduced tax burden on individuals and businesses.
- The committee is set to address the issue of multiple taxation on businesses and increase collection to address the country’s low revenue-to-GDP ratio.
- Part of the committee’s recommendation includes a new withholding tax regime billed to commence from January 1st, exempting small businesses, producers and manufacturers, including farmers, from paying such withholding tax. It also reduced the rates for businesses with low margins.
