On Saturday, October 7 2024, stakeholders from various sectors, including government, private sector, civil society organisations, the academia, traditional rulers, religious leaders and the media converged on Kaduna to discuss the contentious tax reform bills currently before the National Assembly.
The discourse, which was organised by the Nigerian Institute of Public Relations (NIPR), Kaduna State Chapter, provided a veritable platform for the Minister of Information and National Orientation, Mohammed Idris, to mobilise stakeholders to engage in a constructive dialogue on the bills. The theme of the dialogue was: ‘The Roles of Public Relations in Fostering Constructive Dialogue for National Economic Renaissance’.
The bills
The bills facing opposition from some governors, lawmakers and CSOs, include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; and Nigeria Tax Bill, 2024 are aimed at revamping the country’s tax laws.
NIPR stating position
Setting the tone for the discussion, president of NIPR, Dr. Ike Neliaku, while throwing the support of the institute for the tax reforms, said it is willing to partner with the Ministry of Information and National Orientation to take the tax reform ‘gospel’ ‘to the six geo-political zones of the country. “We saw the responsibility to provide this credible professional platform for citizens to engage with government on this issue of tax reforms. We have done research, we have followed up, we have engaged and we can really predict that unless we all sit down as we are sitting down today to discuss this matter, people might not understand where the government is going and the government might not understand the intention of the citizens,” he said.
He lauded the courage of Information and National Orientation Minister, Mohammed Idris, for attending the conference, saying it is not every government official that would agree to chair discussion on a controversial subject matter like the tax reform bills.
Minister’s Remarks
In his remarks, Idris, a consummate public relations expert who pledged to tell Nigerians the truth about government policies at all times on assuming office, assured Nigerians that the administration of President Bola Ahmed Tinubu would look into all genuine concerns raised by Nigerians.
Speaking in both English and Hausa, the Minister described the bill as crucial and timely, saying that Nigeria’s tax administration system is due for reform in terms of design and implementation flaws as well as taxpayers’ attitude. He however, called for constructive dialogue on the tax reform devoid of regional, ethnic and religious sentiments as, according to him, dialogue is one of the fundamental ingredients of democracy and President Tinubu, he noted, would never do anything to undermine it.
“In a democracy, constructive dialogue is essential for the advancement of society. We must give voice to diverse opinions and respect those we disagree with. We would not always agree on all issues, but we must be guided by the fact that our common humanity, nationhood and sense of patriotism unite us more than our differences. The Tinubu administration will never do anything to undermine the ideals of participatory democracy.
“Our mandate and responsibility for governing and reforming Nigeria came by way of democracy and we would continue to live up to those very high democratic standards and expectations.” He said.
Idris highlighted the significance of taxation, quoting Benjamin Franklin’s phrase, “In this world, nothing is certain except death and taxes.
“Taxation is a crucial source of financial power for governments to provide social services for their citizens,” he said.
The minister noted that the ongoing review of tax laws is timely and crucial, especially as part of a larger set of macroeconomic reforms aimed at setting the country on an irreversible path of growth and development.
“The full details of the new tax bills are available in the public domain, and I commend the Presidential Committee on Fiscal and Tax Reform for their excellent job in this regards in terms of public engagement,” Idris said.
He, therefore, encouraged Nigerians to express their views, assuring that the executive would listen to stakeholders’ concerns and work towards addressing them.
Expert view
In his presentation, Mr. Kajesomo Kehinde Victor, Deputy Director/Head, Treaties and International Tax Policy Division, Federal Inland Revenue Service (FIRS), said if the bills sail through, that would be the best thing to happen to Nigerian economy.
He highlighted some of the proposals of the bills that low-income earners (N83,000 monthly) would be exempt from the Pay As You Earn (PAYE) tax. Similarly, he emphasised that PAYE will be reduced for those earning less than N1.7 million per annum.
Victor noted that households and individuals would enjoy zero value-added tax on food, healthcare, education and transportation as there would be VAT exemption on transportation, renewable energy, CNG, baby products, sanitary towels, rent and fuel products. He also said the reforms are aimed at streamlining the over 30 tax laws in the country into four making the tax system simple and efficient.
“What we have presently, if you are a company in Nigeria, whether you make profit or not, you pay tax. If you make profit, you pay tax on the profit, if you make loss, you pay tax on your capital,” he said.
He said the focus of the reforms is to tax profit and not capital in order to promote prosperity rather than poverty.
The lead discussant, Prof. Mustapha Bagudo, said the concern of the north on the tax reform bills stemmed from VAT and education levy. He said if NASENI and TETFUND are scrapped due to the tax reforms, it would have adverse effects on the educational sector.
“The question that we need to discuss is, what is the implication of this? When you go to the higher institutions in Nigeria today, what you can see is the TETFund structures. If you remove the TETFund structure in this institution, those institutions will cease to exist. If by 2030, you say the TETFund will cease to exist, what will happen to the Nigerian high institutions?” he asked.
Prof. Bagudo, however, declared that the north was unnecessarily overheating the polity on the issue of VAT saying “We need to talk to ourselves”.
“In the long run, if we can put our house in order, we are going to benefit from this. My concern is if the 60 per cent is based on derivation or is it based on consumption. If it is based on consumption, northerners should not panic.
“Number one, they said 20 per cent based on equity. What is our concern on that 20 per cent based on equity? We are all part of Nigeria. The concern is that if the 60 per cent is based on consumption, then why are we worried? Why are we worried? Because if it is based on derivation, now there is a problem because gradation will be affected. Maybe most of the companies are based in Lagos. That is our concern,” he said.
He also faulted the North on the issue of VAT from alcohol consumption, saying any income generated from sale of alcohol is not allowed in Islam because the religion is against alcohol consumption.
From activists/CSOs
In his remarks, a renowned human rights activist, Senator Shehu Sani, who was one of the panelists during the dialogue, lamented lack of courage by many lawmakers from the north to take a stand on the bills, saying majority of those opposing the bills are ignorant about its provisions.
“There is a philosophical saying that, ‘fine is something you pay for doing something wrong while a tax is fine you pay for doing something right. I am in full support of the bills because this is about Nigeria, our future, our economy, our well-beings and our lives. People have been elected into offices to either serve in executive capacity or at the legislative capacity. Unfortunately, what I have seen since the tax reform bills debate started is that the whole issue has been politicised.
“We are no more talking about the content and clauses; everything is now mired in politics. It has reached a crescendo where people are now afraid of voicing out there opinion including the senators and members of the house of representatives.
“People from this part of the country have been intimidated not to speak in support of the bill. The governors are also evading questions and explanations on the bill. I have not seen town hall meetings organised by lawmakers to explain the bills.”
Another panelist, Prof Okey Okechukwu, described the dialogue as an institutional approach to public communication as, according to him, it is important to note that every policy of government is intended to address some public good.
“If there are issues and you don’t talk about it, there are tendencies that they will multiply. What I see emerging from this conversation is a consensus; the bill is being demystified.”
He debunked insinuations that some government agencies would be scrapped, saying, no agency of government would be scrapped, but would only be migrated to direct funding.
“What I see is a tax reform bills that would make those interested in leadership to make their states conducive for investors. The tax reform bills is going to compel close attention to development, close attention to IGR. The bills are investment focused, development focused and human capital development focused,” he said.
Change of mind
The District Head of Doka in Kaduna state, Alhaji Bala Tijani, in his remarks said he used to have negative perception about the bill but said through the discussion, his orientation has changed.
“I am one of those who used to think that I would pay more tax if the bills sail through. I also thought the north would be impoverished but I am now enlightened. I thank the Minister of Information and National Orientation and NIPR for putting this together,” he said.
Also, a resident of Kaduna, Alhaji Ibrahim Sani, who attended the dialogue said it was an eye opening event.
“Contrary to what we were made to believe, the bill is good for entire Nigeria including the north. I now know that those earning very little will pay little or no taxes, thereby helping them manage their finances better.”
On her part, a business woman Hajiya Aisha Abdul Salam said the bill is good for owners of Small and Medium Scale Enterprises because it would eliminate double taxation.
“The dialogue has changed my mindset about the bills. These reforms are designed to ease the burden on hardworking Nigerians while ensuring everyone contributes fairly. By supporting this effort, we can create a tax system that works for all and funds the development projects that would improve our nation.”