The Nigeria Economic Summit Group (NESG) has expressed its strong support for the tax reforms measures currently under consideration by the National Assembly. Describing the proposals as pivotal to achieving economic transparency, fiscal equality, and enhanced revenue generation, the NESG highlighted the importance of balancing economic imperatives with political sensitivities.
Speaking at a media session, NESG CEO Tayo Aduloju stressed that the reforms are designed to protect disadvantaged businesses and low-income earners while shifting the tax burden to wealthier individuals and businesses. “The President’s instruction to us was clear: tax the harvest, not the seed,” Aduloju emphasized, reaffirming the NESG’s role in ensuring the reforms align with social and economic justice.
The proposed reforms include:
- The Nigeria Tax Bill 2024
- The Tax Administration Bill
- The Nigeria Revenue Service Establishment Bill
- The Joint Revenue Board Establishment Bill
While widely supported, the reforms have faced resistance, particularly from northern Nigeria, where leaders argue that the measures may disproportionately impact the region. In response, the NESG called for expanded public hearings to gather inputs from all geopolitical zones and ensure that the legislative process addresses concerns about equity and regional disparities.
Towards a Transparent Tax System
Furthermore, the NESG highlighted the reforms’ potential to address long-standing issues such as unauthorized tax collectors and the lack of VAT refund mechanisms. Head of Research and Development Joseph Ogebe noted that simulations based on household data showed significant gains for sub-national economies, with updated projections expected to offer more clarity in early 2025.
Aduloju acknowledged the challenges but maintained that the reforms are a necessary step toward fiscal federalism and economic stability. “Lawmakers must refine the bills to ensure they work for more Nigerians,” he said, adding that the NESG is committed to constructive engagement and accountability.
Also, the NESG urged stakeholders to collaborate in refining the reforms, emphasizing that transparency, fairness, and inclusivity are essential for their success. “If the final legislation does not protect the working poor, expand the tax net, or enhance transparency, we will not hesitate to speak out,” Aduloju affirmed.
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