Massive Opposition! Over 200 Memoranda Flood Tax Reform Debate From NLC, Afenifere, Ohanaeze, Others

The Federal Government’s ambitious initiative to overhaul Nigeria’s tax laws has gained significant traction, with both the Senate and House of Representatives receiving over 200 memoranda from various stakeholders during public hearings.....KINDLY READ THE FULL STORY HERE▶

The hearings, which saw participation from government bodies, private sector representatives, civil society organizations, and tax professionals, marked a pivotal moment in the country’s tax reform process.

A primary focus of the discussions was finding a balance between fostering economic growth, generating revenue, and ensuring business sustainability, while addressing concerns raised by individuals and corporate entities.

Diverse Views from Stakeholders

The hearings revealed a wide range of perspectives on the proposed tax reforms. While some stakeholders supported the initiative as a step toward modernizing the tax system, others cautioned about potential challenges.

The House of Representatives alone received 54 memoranda, underscoring the broad interest in the ongoing tax reform debate.

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

Striking a Balance Between Growth and Fairness

Key issues discussed during the hearings included expanding the tax base without raising rates, preventing undue burdens on businesses and individuals, and ensuring fairness in tax distribution.

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

Similarly, the Manufacturers Association of Nigeria (MAN) urged the government not to impose higher taxes on raw materials, warning that such measures could increase production costs and harm local industries.

The Nigerian Labour Congress (NLC) raised concerns about the impact of the reforms on low-income earners, stressing the need for a progressive tax system that places a greater burden on high-income earners and corporations.

Calls for Transparency and Sector-Specific Adjustments

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