Tax Reform Debate Intensifies As NLC, Afenifere, ACF, Ohanaeze, Others Submit Over 200 Memoranda

The Federal Government’s ambitious plan to revamp Nigeria’s tax laws has gained momentum as the Senate and House of Representatives received over 200 memoranda from stakeholders during public hearings.

Naijaonpoint reports that the hearings, which attracted participation from government agencies, private sector representatives, civil society groups, and tax professionals, marked a crucial step in the country’s tax reform process.

A key focus of the discussions was how to balance economic growth, revenue generation, and business sustainability, while addressing concerns from individuals and corporate entities.

Stakeholders Offer Diverse Perspectives

The hearings showcased varied opinions on the proposed tax reform bills. While some stakeholders welcomed the move as a step toward modernizing the tax system, others warned of potential challenges.

The House of Representatives alone received 54 memoranda, indicating widespread interest in the tax reform debate.

Government officials and economists argued that the reforms would reduce the budget deficit, enhance tax compliance, and streamline collection processes. However, critics expressed concerns that proposed changes to Value Added Tax (VAT) and income tax brackets could negatively impact small businesses and middle-class citizens.

Finding A Balance Between Growth And Fairness

Key issues raised during the hearings included expanding the tax base without increasing rates, preventing overburdening of businesses and individuals and ensuring fairness in tax distribution.

The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) called for a simplified tax system to enhance compliance, especially for small and medium-sized enterprises (SMEs). The group also advocated for lower corporate tax rates to encourage investment and job creation.

Similarly, the Manufacturers Association of Nigeria (MAN) urged the government to avoid increasing taxes on raw materials, warning that it could lead to higher production costs and hurt local industries.

The Nigerian Labour Congress (NLC) voiced concerns about the impact on low-income earners, emphasizing the need for a progressive tax system where high-income earners and corporations contribute more.

Calls For Transparency And Sector-Specific Adjustments

Several civil society organizations (CSOs), including Tax Justice Network Africa, pushed for greater transparency and accountability in tax collection and spending.

They also urged the government to combat tax evasion among multinational corporations and ensure that revenue is directed toward social development programs.

Representatives from the oil and gas sector cautioned that frequent tax policy changes could affect Nigeria’s competitiveness in the global market. Meanwhile, the Nigerian Bar Association (NBA) stressed the importance of clear legal frameworks to prevent confusion and legal disputes.

Other contributions came from organizations such as the Alumni Association of the Legislative Mentorship Initiative, the Centre for African Policy Research Advisory, and Project Sprint.

The Legislative Mentorship Initiative described the reforms as a strategic blueprint for Nigeria’s economic future but urged lawmakers to consider the impact on vulnerable populations.

The Centre for African Policy Research Advisory advocated for public engagement in the reform process, while Project Sprint raised concerns over the effects of VAT adjustments on economic activity and labor supply.

What’s Next For Tax Reforms?

With deliberations ongoing, lawmakers are set to review the memoranda and fine-tune the proposed tax reforms.

The goal is to pass legislation that will boost economic growth, reduce inequality, and enhance government revenue collection.

However, the specifics of the reforms remain contentious, with lawmakers facing the challenge of balancing competing interests while crafting a fair, sustainable, and business-friendly tax system.

As the National Assembly navigates the complexities of tax policy, all eyes remain on policymakers to see how they will reconcile diverse perspectives and deliver a tax system that drives Nigeria’s economic future.

In the coming months, stakeholders hope that the final reform package will effectively address their concerns while positioning Nigeria for long-term fiscal stability and growth.