A national interest group which has young creative and intellectual Nigerians known as Emerging Leaders Forum of Nigeria, ELFON has today, Wednesday the 11th day of December, 2024 in Abuja assembled 102 of her members from the 36 States of the federation including the Federal Capital Territory to have a first time deliberation on the much talked about Tax Reform Bill.
After the meeting of the Emerging Leaders which began by 10:18am and ended by 14:38, the President, Emerging Leaders Forum of Nigeria, Amb. Godstime Chukwubuikem Samuel while addressing journalists at the ELFON Chambers stated that the Emerging Leaders have gone through the 213 pages of the Tax Reform Bill and have lofty findings about the proposed Bill.
Godstime said that the proposed bill has its merits and demerits, noting that a wider consultation for possible amendments will be ideal.
We have noted over 6 grey areas in the said Tax Bill of which one of them is the place of Revenue Mobilization, Allocation and Fiscal Commission, RMAFC in this whole arrangement.
We need the National Assembly to educate us on Section 162, subsection 2 of the Nigeria Constitution and how it is applicable in the proposed bill. Because if this bill is signed into law the way it is now, there will be a constitutional breach. There are other underlining factors that I and my colleagues have discovered of which we have resolved to call for a larger National Youth Converge of 774 delegates, one from each local government area of the federation for an interface with our President, Asiwaju Bola Ahmed Tinubu, the Head of the Presidential Tax Reform Committee, Taiwo Oyedele, Chairman of Federal Inland Revenue Service, Adedeji Zacchs and the chairman of Revenue Mobilization, Allocation and Fiscal Commission, Mohammed Bello Shehu; Godstime stated.
Aside the grey areas, we have discovered lofty contents in the bill that are indeed people oriented:
- Lower Taxes for Low-Income Earners: If you earn less than ₦83,000 per month, you won’t pay income tax (PAYE).
- Cheaper Essentials: No VAT on food, healthcare, education, rent, sanitary products, electricity and transportation.
- Support for Workers: Tax relief for companies that give wage increases or transport subsidies to low-income workers.
- Remote Work Benefits: Easier tax rules for remote workers and digital professionals.
- Affordable Housing: No stamp duty on rent below ₦10 million.
- Help for Armed Forces: Tax-free income for soldiers and police fighting insecurity.
We have also read that for Small Businesses:
No Corporate Tax: Small businesses with less than ₦50 million turnover don’t pay corporate income tax.
2. Simpler Tax Processes: No need for audited financial statements or complex tax returns.
3. Protection from Harassment: Roadblocks and illegal cash tax demands will be outlawed.
4. Better Dispute Resolution: Tax issues will be resolved quickly (within 14 days).
5. Encouragement for Growth: Tax incentives to help businesses formalize and expand.
For Big Businesses and Investors, Lower Corporate Tax: Corporate income tax is reduced from 30% to 25%.
2. Avoiding Double Taxation: Credits for income earned abroad and input VAT deductions reduce production costs.
3. Easier Restructuring: Businesses can reorganize or merge without excessive tax penalties.
4. Encouraging Startups: Pre-startup expenses are now tax-deductible for up to 6 years.
5. Quicker Refunds: VAT and tax refunds will be processed in as little as 30 days.
And for High-Income Earners
1. Tax-Free Personal Assets: No tax on private vehicles, homes, or personal items worth less than ₦5 million.
2. Lower Taxes on Investments: No tax on gains from small share sales or real estate purchases.
3. Fairer Tax Rates: Progressive tax rates ensure high earners contribute more.For State Governments
1. More VAT Revenue: States get an extra 5% of VAT revenue.
2. Exclusive Control: States can now collect taxes from electronic transfers and lottery businesses.
3. Stronger Revenue System: Federal support for tax administration and collaboration.The ELFON President further stated that the proposed Tax Reform Bill has increased State Authority to Tax: States will now have more power to tax, which could lead to inconsistencies or potential conflicts in tax administration. Enforcing these changes could be slow or uneven across the country, especially in states with weaker infrastructure.
While small businesses benefit, larger companies may shoulder a heavier load to balance tax revenue losses.
Again, Dependence on Compliance is another factor that might further mess our economy up. As Emerging Leaders and partners in Nation building, we have come to terms with the fact that the success of these reforms relies on citizens and businesses fully complying with the tax system, which may take time to achieve. Hence, the need for a broader convergence of young Nigerians who are future of Nigeria to interface with Government for a better output because if you say the government is for us, anything for us without us is not for us, Godstime declared.
The sessions of the meeting had a one hour X-ray on Security and the wayforward. Also addressing newsmen what the Emerging Leaders deliberated about Security, Godstime professed in confession that the security of lives, properties and Nigeria territories have greatly improved within the last 6months. While commending the National Security Adviser, Nuhu Ribadu, Minister of State Defence, Bello Matawalle, the Nigeria Service Chiefs and men of the security forces for their display of intelligence, gallantry and commitment to the security course, Godstime noted that they Emerging Leaders have resolved to help the Nigeria Defence Council in the area of intelligence gathering as 38,700 Security Intelligence Gathering Volunteers (SIG Volunteers) have posed in readiness to support the Armed forces in the area of Intelligence gathering. In a couple of days, we will be meeting with Nuhu Ribadu and Bello Matawalle to share some vital local intelligence and ideas which we wouldn’t want to make public here. All hands must be on deck to make Nigeria better, Godstime Concluded.
