Expert Calls For Review And Understanding on Tax Reform Bills

Chief Akindele Omole, FCA, ACTI

‎Nigerians have been task to lend their voices on the current tax reform that has now generating serious issues amongst various stakeholders in the country.

Speaking on the tax reform in Akure, Ondo state capital, Chief Akindele Omole,FCA said the time for all tax professionals, business community, religious community and indeed, all Nigerians, to get familiar with the issues and lend their voice to this debate before the act is foisted on all.

According to the economy expert, the Tax reforms bills is a very voluminous documents that needs to be scrutinized and analyzed by all, not only because of the interests and controversies it has generated, saying but because it is going to be the bedrock of the nation's economy and public finance with its attendant impact on all , in order to ensure that a fair and balanced version is what gets passed at the end of the day. 

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‎In 1789 Benjamin Franklin said inter alia ‎"...in this world, nothing is certain except death and taxes,”

Adding that, much as all the positives that have highlighted, are not particularly incorrect about the reform, believing that passing the bills as they are, without the revision of certain aspects, will be very unfair, and in some cases, anti investment and this will defeat the core intent and essence on which the reforms were purportedly anchored. 

‎Noting that on the issue of the correct attribution of collections to where the economic activities takes place, as well as, using derivation as a key determinant in what accrues to each state of the federation, are steps in the right direction. 

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‎ Saying the oppositions raised by notable voices from Northern Nigeria on this issue are not entirely unfounded, just that they seem to be too heavy on politics and rhetorics than offering credible basis for their opposition.That take for instance, every part of Nigeria have their areas of comparative advantage in terms of economic activities and contributions to the national economy.

 Informing that he North is predominantly heavy in agriculture and food production which unfortunately, are largely exempted from VAT, for the general benefit of all Nigerians. Therefore, increasing derivation to 60%, when you have exempted majority of their economic activities, is clearly placing the North at an unfairly disadvantaged position which the good side of proper attribution would not be able to cure.

 Adding that in view of  increasing derivation from the existing 20% to 35% or 40% could be fairer than the proposed 60% in the reform bill,the expert notes.