- Says it Won’t Destroy any Sector of the Economy
The Presidency has clarified that the tax reform bills does not in anyway suggest the scrap of government agencies including The Tertiary Education Trust Fund (TETFund), National Agency for Science and Engineering Infrastructure (NASENI) and National Information Technology Development Agency (NITDA).
This was contained in a statement signed by the Special Adviser to President Tinubu on Information and Strategy, Bayo Onanuga, on Monday.
“Contrary to the lies being peddled, the bills do not suggest that NASENI, TETFUND, and NITDA will cease to exist in 2029 after the passage of the bills.
“Government agencies, such as NASENI, TETFUND, and NITDA, are funded through budgetary provisions with company income tax and other taxes paid by the same businesses that are being overburdened with the special taxes.” The statement read in part.
NPO reports that this is contrary to earlier claims by Borno State governor, Prof. Babagana Umara Zulum, while speaking on Channels TV’s programme, ‘Sunday Politics.
“Another provision of the Tax Bill is that by 2029, TETFund will be scrapped because companies will cease to support TETFund.
”According to the law, NASENI will be scrapped in 2029…NITDA will be scrapped, these are some of our concerns,” the Governor had claimed.
The statement further highlighted that the bill will not make Lagos or Rivers State more affluent and other parts of the country, as recklessly canvassed, poorer.
Additionally, it noted that the bill seeks to enhance the lives of Nigerians rather than destroy any sector of the economy.
“The bills will not destroy the economy of any section of the country. Instead, they aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living.”
The statement also attributed President Tinubu’s decision to embark on the tax fiscal policy reforms to the need to streamline tax administration in Nigeria and make the operating environment conducive for businesses.
“For decades, businesses, investors, and private sector players in Nigeria have complained of being overburdened by a myriad of taxes and levies, including those earmarked to fund various government agencies and initiatives.
“The multiple taxes complicate the economic environment, making Nigeria uncompetitive for investment and preventing many businesses from growing or continuing their operations.
“Some companies have had to make the rational decision to relocate to other countries. We can not continue on this path or wait for 20 years if this country is to deliver the prosperity we need for our people.
The statement further read in part;
“The proposal, as contained in section 59(3) of the Nigeria Tax Bill, only seeks to consolidate some of the earmarked taxes imposed on companies and replace them with a single tax to be shared with the key agencies as beneficiaries in a phased manner until 2030.
“The time frame offers ample opportunity for the affected agencies to explore other funding sources in addition to budgetary allocations in line with the constitution and international best practices.
“It is a misrepresentation of facts to conclude that changing an agency’s funding source amounts to scrapping it. None of the countries leading globally in education, science, engineering, or information technology have similar earmarked taxes.
“The government imposes major taxes, be it income tax, consumption tax, or other taxes, to channel resources to its areas of priority at the time. Imposing a separate tax to fund an agency is an aberration that has yet to yield results despite the huge burden on businesses. The tax bill seeks to address this problem.
”Relevant stakeholders and public analysts owe it a duty to properly educate themselves about the bills’ contents and avoid misleading the public for any reason. We may be entitled to our opinions, but such views must be informed and based on facts, not emotions targeted at inflaming passions.
“In a period like this, when our people across the country look up to leaders for guidance and direction on matters of public importance, such as the Tax Reform Bills, leaders should be more measured in their public utterances to avoid heating the polity and polarizing the country unduly.”
The President embraced the public interest these bills have generated and encouraged leaders and the necessary stakeholders across the country to take advantage of the Public Hearings that the National Assembly will organize to present their views on how best to reform our taxes and fiscal regime.