How Tinubu's 'Tax Reform Bill' set to boost economic growth

President Tinubu and his team continue to advocate for the bill, seeing it as a foundation for national development and economic growth for all Nigerians.

President Bola Tinubu's Tax Reform Bill has emerged as a cornerstone of his administration's economic vision, focusing on creating a unified and efficient tax system that promises to drive national growth.

The bill, comprising four legislative components, targets multiple taxation, enhances tax processes, and aims to align Nigeria's tax system with global standards.

Key components of the reform include the Nigeria Tax Bill, intended to reduce overlapping taxes; the Nigeria Tax Administration Bill, which seeks to harmonise tax processes nationwide; the Nigeria Revenue Service (Establishment) Bill, which proposes renaming the Federal Inland Revenue Service (FIRS); and the Joint Revenue Board Establishment Bill, aimed at creating a Joint Revenue Board to streamline tax administration across the country.

Amidst all these components of the Tax Reform Bill, Pulse Nigeria reported that the northern block has expressed scepticism over these reforms.

President Tinubu has strongly advocated the reform, appealing to northern governors to support the bill's progression.

"This bill is not a regional matter but a national initiative," Tinubu stated, underscoring the impartial intent of the reform. "It is crafted to create a fairer, more effective tax system that uplifts all Nigerians, irrespective of their region."

What Tinubu's 'Tax Reform Bill' seeks to achieve

President Bola Tinubu holds his first meeting with the FIRS chairman after his two weeks vacation. [X, formerly Twitter]

Giving more insight into this bill, Ms. Arabinrin Aderonke Atoyebi, the Technical Assistant for Broadcast Media to the Executive Chairman of the FIRS, described it as one that aims to transform Nigeria's economic landscape by reducing tax complexities and establishing a transparent, equitable model.

The reform seeks to boost compliance, generate increased revenue, and fund essential public services by simplifying tax burdens by simplifying tax burdens. Tinubu envisions a Nigeria where "businesses can flourish, investments are abundant, and citizens enjoy improved living standards," the bill marks a significant step in that direction.

READ ALSO: Northern govs told to embrace Tinubu's 'Tax Reform Bill'

In her latest informative piece, she stated that one particularly significant aspect of the reform is its approach to Value-Added Tax (VAT) distribution. The bill proposes a consumption-based VAT derivation model, allocating revenue to where goods and services are consumed rather than produced.

This means that while a major telecom company might be headquartered in Lagos, the high consumer base in the northern region would ensure that VAT revenue primarily benefits the north.

"This model is not designed to disadvantage any region," she noted, addressing concerns from stakeholders. "It ensures fair revenue allocation and is structured to support areas with higher consumption levels."

What's in it for an average Nigerian?

For the average Nigerian, the reform is designed to alleviate the complexities and burdens of the current tax system, making it simpler for both individuals and businesses to fulfil their obligations.

This improvement, she argues, will enable the government to fund quality-of-life improvements for citizens. The reform bill also aligns with global best practices, potentially making Nigeria a more attractive destination for investment.

READ ALSO: 'North cannot reap where it didn’t sow' – Omirhobo backs Tax Reform Bill

Ms Atoyebi stated, "the bill signals the beginning of an efficient, fair tax system where all citizens can prosper."

Atoyebi emphasised the role of collaboration and open dialogue in achieving this vision, adding, "the time for change is now, and Nigeria must remain focused on the collective benefits that this reform will bring."

As Nigeria embarks on this transformative journey, the Tax Reform Bill stands as a testament to the government's commitment to economic prosperity, efficiency, and fairness across regions.

President Tinubu and his team continue to advocate for the bill, seeing it as a foundation for national development and economic growth for all Nigerians.

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