As the tax reform bills continue to generate interest across the country, the Centre for Economic and Social Justice (CESJET) and 50 other civil society organizations (CSOs) have intensified its support to ensure that the Bills gain wider acceptance in the country.
have thrown their weight behind President Bola Tinubu’s tax reform bills.
This endorsement came during a Senate public hearing, where stakeholders gathered to discuss the proposed legislation.
The tax reform bills, introduced by President Tinubu in October 2024, aim to overhaul Nigeria’s tax system. The proposed laws comprise four primary bills: the Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill.
The CESJET and other supporting CSOs, in separate memos submitted to the Senate Committee on Finance, agreed that the tax reform bills will simplify the tax system, enhance compliance, and create a more business-friendly environment.
They also argue that the proposed laws will boost revenue generation for sustainable development, addressing Nigeria’s relatively low tax-to-GDP ratio.
According to the CSOs, the phased increase in Value-Added Tax (VAT) from 7.5% to 15% by 2030 will provide a stable source of revenue for the government, enabling it to fund critical infrastructure projects and social programs.”
The groups also commended the bills for introducing exemptions from corporate income tax for small businesses with annual turnovers below ₦N50 million, adding that this provision will stimulate entrepreneurship, innovation, and economic development, particularly in rural areas.
Bilal Abdulahi, CESJET Spokesman added: ” The tax reform bills will improve tax administration, reduce corruption, and increase transparency while the establishment of the Nigeria Revenue Service and the Joint Revenue Board will enhance revenue collection, reduce tax evasion, and promote accountability.
“We welcome the introduction of a 5% excise duty on telecommunications services, which they believe will generate significant revenue for the government.
“We believe that the tax reform bills will have a transformative impact on Nigeria’s economy, promoting growth, development, and prosperity for all citizens.”
Meanwhile, the Coalition of Civil Society Organisation on Economic Watch described the bill as a critical piece of legislation that has the potential to transform Nigeria’s tax system and promote economic growth, fairness, and transparency.
“The Coalition urges this very distinguished committee of the Senate of the Federal Republic of Nigeria to pass this Bill as a Legacy Bill for the 10th Assembly and the presidency to drive the Nigeria state towards the much anticipated multi-trillion Dollar economy in the years to come,” Opialu Fabian Opialu, its convener said.
On its part, the Save Humanity Advocacy Centre (SHAC) said the bills will also enhance Nigeria’s tax credibility and reputation among international investors, making the country a more attractive destination for foreign investment.
According to its Executive Director, Dr. Ben Amodu, the bills will promote fiscal federalism, allowing states and local governments to retain a larger share of revenue generated from taxes, thereby enabling them to fund development projects and improve public services.
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The group, however, urged the Federal Government to establish a robust Tax Education and Awareness Program to educate citizens on tax matters, particularly the reforms, in their local languages and dialects.
In its submission, the Empowerment from Unemployed Youth Initiative (EUYI) said it would be the biggest beneficiary of the contents of this bill when it hopefully becomes an act and takes effect.
Comrade Momoh Danesi, its national president, added: “The bills have the potential to create jobs and stimulate economic growth if implemented effectively. The Bills’ provisions, such as reduced tax rates, simplified tax compliance, and increased investment incentives, demonstrate a clear commitment to promoting a business-friendly environment.
“However, to fully realize the Bill’s job-creation potential, it is essential to address the challenges and limitations highlighted in this discussion. This includes providing targeted tax incentives for job-creating sectors, reducing tax rates for SMEs, and investing in infrastructure and vocational training.
“Furthermore, regular review and update of the tax laws and regulations are crucial to ensuring they remain relevant and effective in creating jobs and stimulating economic growth.”
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