President Bola Tinubu's proposed Tax Reform Bill has ignited a fierce debate following opposition from the Nigeria Labour Congress (NLC) President, Joe Ajaero.
While Ajaero has called for the bill’s withdrawal, citing potential misalignment with workers’ interests, tax analyst Arabinrin Aderonke has emerged as a staunch advocate, arguing its transformative potential for Nigeria’s economy.
Speaking on the bill’s merits, Aderonke described it as a groundbreaking initiative designed to create a more equitable economy.
“The Tax Reform Bill is not just another policy document; it is an initiative aimed at ensuring a more inclusive and equitable economy for all Nigerians,” she stated.
READ ALSO: Tax Reform Bills not solution to economic problems - Kano Gov opposes Tinubu
Relief for Workers and SMEs
One of the bill’s key features is its provision of targeted tax relief. Workers earning up to ₦1 million annually will be exempt from PAYE taxes, while those with salaries below ₦1.7 million monthly will benefit from reduced tax rates.
Additionally, essential goods and services such as food, healthcare, and electricity will be zero-rated for VAT, a measure Aderonke believes will significantly alleviate the financial burden on low and middle-income earners.
Small businesses, considered the backbone of Nigeria’s economy, stand to gain considerably. The tax exemption threshold for small enterprises will increase from an annual turnover of ₦25 million to ₦50 million.
“This change means many small enterprises can enjoy full exemptions from company income tax, thereby reducing operating costs and enabling growth,” Aderonke noted.
Corporate Incentives and Transparency
The bill proposes reducing the corporate income tax rate for larger corporations from 30% to 25%. It also introduces the Office of Tax Ombud to address disputes and prevent arbitrary assessments.
ALSO READ: Tinubu is being blackmailed over tax bills - Bwala reacts to Mohammed's outburst
Aderonke praised these measures, stating, “The reforms foster transparency and fairness in tax administration, creating a more investor-friendly environment.”
Furthermore, the bill aims to harmonize tax policies across states, eliminating overlapping levies that have historically burdened businesses.
Aderonke highlighted allocating 60% of VAT revenue to states where goods and services are consumed as a game-changer.
“This approach empowers states to rely less on federal allocations, fostering economic independence,” she explained.
Modernizing Tax Administration
The reforms prioritise modernising Nigeria’s tax administration system by streamlining processes and safeguarding taxpayers’ rights.
Through these reforms, the government hopes to attract local and foreign investments, stimulate job creation, and promote business expansion.
“These measures underscore the administration’s commitment to fostering an investor-friendly economy,” Aderonke added.
Labour Union’s Concerns
Despite these promises, critics like Ajaero remain sceptical.
The NLC leader has expressed concerns over the bill’s implementation and its alignment with workers’ interests.
However, Aderonke urged Ajaero and other stakeholders to reevaluate their stance, emphasising the extensive consultations conducted during the bill’s drafting.
“This is a once-in-a-generation opportunity to reshape Nigeria’s economic sector,” she asserted.
A Path Towards Economic Equity
As the debate continues, the Tax Reform Bill stands as a pivotal step towards economic equity and growth.
With promises of tax relief for workers, incentives for businesses, and a more transparent tax system, the bill seeks to transform Nigeria’s financial landscape.
Stakeholders now face the critical task of bridging divergent opinions to ensure its effective implementation for the benefit of all citizens.
ridoola.blogspot.com.ng
Comments
Post a Comment