Former Vice President Atiku Abubakar has weighed in on the ongoing debate surrounding the controversial tax reform bills introduced by President Bola Tinubu, which are currently before the National Assembly.
Atiku’s statement follows a recommendation by the National Economic Council (NEC) to withdraw the Tax Reform Bill, a piece of legislation that has stirred significant public discourse.
In a statement released on Sunday, Atiku emphasized the need for a fiscal system that is fair, just, and equitable, highlighting that Nigerians are united in their call for a taxation framework that does not worsen the disparity in development across the country’s federating units. He pointed out that there is widespread concern about the proposed reforms enhancing the status of a few states at the expense of others, thereby deepening the already-existing uneven development.
Atiku stressed the importance of objectivity and transparency in the process surrounding the public hearings being organized by the National Assembly. He noted that for the tax reforms to foster public trust, accountability, and good governance, the legislative process must be open and inclusive. This, he argued, would allow for broad participation from a wide range of stakeholders, including Civil Society Organizations (CSOs), traditional institutions, politicians, public officials, and subject matter experts.
The former Vice President further urged the National Assembly to revisit and make public the resolutions of the National Economic Council (NEC). He described the NEC as a critical advisory body with constitutional authority to offer counsel to the President on the economic affairs of the Federation. Atiku called on the lawmakers to take these resolutions into account to ensure that the final version of the Tax Reform Bills reflects the interests and welfare of the majority of Nigerians.
“I have followed the intense public discourse on the Tax Reform Bills with keen interest. Nigerians are united in their call for a fiscal system that promotes justice, fairness, and equity. They are loud and clear that the fiscal system we seek to promote must not exacerbate the uneven development of the federating units by enhancing the status of a few states while unduly penalising others,” Atiku said in his statement.
The Senate recently passed the tax reform bills for second reading, despite opposition from certain quarters. The bills, which propose significant changes to Nigeria’s tax system, have already been referred to the Committee on Finance, which has been given six weeks to review and report back.
Among the proposed reforms is an increase in the Value Added Tax (VAT) from 7.5% to 10% by 2025, as well as the introduction of a 5% excise duty on telecommunications services and a similar excise tax on income from lotteries and gaming. These proposals have raised concerns among both lawmakers and the general public, with some fearing that the new taxes could place an additional burden on Nigerians already grappling with economic challenges.
Atiku’s comments have added to the mounting pressure on the National Assembly and the executive branch to carefully consider the potential consequences of the tax reforms and ensure that any changes made are in the best interest of all Nigerians. As the legislative process continues, it remains to be seen how the government will address the concerns raised by various stakeholders.
