Tax Reform Bills favour income earners , eliminate multiple taxations, stakeholders

The Kogi state government has said the contents of the Tax Reform Bills favour the low income earners and draw the rich into the tax net, including eliminating multiple taxations and others .

The state government disclosed this Wednesday at a town hall meeting with concerned citizens and other stakeholders in tax affairs in Lokoja.

The meeting was midwifed by the state Ministry of Finance and other stakeholders in tax affairs, with the theme: “one-day citizen engagement and interactive session on the Tax Reform Bill”.

In his contribution, the general manager, Kogi state Internal Revenue Service (KGIRS), Alhaji Suleiman Enehe stated that the new Tax Reform Bills were classified under four different pieces of legislation : The Nigeria Tax Bill; the Nigeria Tax Administration Bill; the Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill.

He said if passed to law, it will repeal many existing laws that contain provisions on imposition and collection of taxes, stressing, the new tax laws harmonise the 62 item taxes at the federal level to 9 digit and collapse the state to 4 from 25 tax items.

The KGIR Boss added that the tax bill is therefore meant to transform the nation tax administration for greater efficiency, by structuring it to update obsolete tax laws and made easy complicated tax ecosystem of the old.

“The new expected tax law empower NRS to oversees all taxes, including the other taxes under some federal agencies like Nigeria Port Authority, Nigeria Customs Service, NUPRC, NIMASA and others .

“The new tax reforms clinically favours the low income earners and small businesses, as it exempted these groups from paying income taxes.

“With its contents, these bills are not against the poor, or low income earners; but promote efficiency and economic growth”, he said .

For instance, he said those earning about N800,000 annually, and supposed to pay income tax under old tax regime are exempted in the new tax reform bills.

Enehe stressed further that the bills outline the powers and functions of the tax authorities,emphasising taxes reserved exclusively for the NRS to collect and those reserved for the states .

He said the new tax bills review VAT revenue empower states to take 55 percent of the revenue ,instead of 50 percent before; and the federal government to share 10 percent instead of 15 percent before.

He therefore implored the eligible tax payers to key into the new tax reform being legislated for a better society in the nearest future.

Several stakeholders, including tax collectors and payers and Civil Society organisations( CSOs) applaud the tax reform bills,with some expressing their reservation in its holistic implementation to the letter.

Others urged the state government and relevant agencies to embark on enlightenment campaign to spread its awareness to the ill informed in the society to douse the misconceptions trailing the bills in certain segment of the society .

However, the kogi state chairman of Kogi NGO Network (KONGONET), Ambassador Muraina Ozovehe Idris applauded the bills ,but caution involvement of consultant in its implementation to avoid counter productive.

He advised the stakeholders to update their information technology systems to make the idea to work effectively , saying, human element in the country cannot be trusted for holistic implementation of the idea.

Earlier, in his address, the state commissioner for Finance and economic planning, Idris Asiru, stated that the initiative was designed to foster collaboration between the government and citizens over the new tax reform under legislation.

“The purpose of this engagement is to provide a platform for citizens to engage with policymakers, understand the importance of the proposed tax reform, and explore how it can benefit the state.

“Tax reform plays a crucial role in ensuring fair taxation, enhancing revenue generation, and promoting economic growth in our state.

“Tax reforms are not just about numbers; they impact the services we deliver and the future of our economy”, he said.