The Federal Government’s ambitious effort to overhaul the nation’s tax laws has moved a step closer to reality following the submission of over 200 memoranda by diverse stakeholders to the Senate and House of Representatives.
The National Assembly’s public hearings, which saw the participation of various interest groups, marked a pivotal moment in the country’s quest to reform its tax system.
Held to discuss the proposed tax reforms, the public hearing attracted contributions from a broad spectrum of individuals and organizations.
These included government agencies, private sector players, civil society groups, and tax professionals, all offering their perspectives on how to reshape the country’s tax framework.
A primary focus of the discussions was on striking a balance between fostering economic growth, improving revenue generation, and addressing the concerns of citizens and businesses alike.
Diverse Stakeholder Voices
The hearings revealed a range of opinions on the tax reform bills, with many stakeholders providing constructive feedback aimed at improving the proposals. In total, the House of Representatives alone received 54 memoranda, underscoring the wide-reaching interest and varying perspectives on the issue.
The bills, which aim to modernize the country’s tax laws, have sparked both support and opposition.
While government representatives and economists emphasized that the reforms would help reduce the budget deficit, improve tax compliance, and streamline collection processes, critics raised concerns about the potential negative effects on small businesses and middle-class citizens.
The proposed adjustments to the Value Added Tax (VAT) and income tax brackets were particularly contentious, with some arguing that these changes might place undue strain on vulnerable sectors of the economy.
Balancing Act between Growth and Fairness
The hearings spotlighted some key issues, including how to expand the tax base without increasing rates or overburdening individuals and businesses.
Stakeholders such as the National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) advocated for a simplified tax system to ease compliance, especially for small and medium-sized enterprises (SMEs).
They also called for lower corporate taxes to boost investment and job creation.
Similarly, the Manufacturers Association of Nigeria (MAN) highlighted the need to incentivize local production, urging the government to avoid increasing taxes on raw materials and other inputs, which could lead to higher production costs and stifle local industries.
The Nigerian Labour Congress (NLC), representing workers, voiced concerns about the potential impact of the reforms on low-income earners.
