Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy, emphasized the urgent need for Tax Reform Bills to assist struggling Nigerians. He responded to Governor Zulum’s concerns about misconceptions regarding the proposed tax changes, promoting a 60 percent derivation model for VAT distribution to improve equity. Oyedele maintained that the process is not rushed, despite Zulum’s call for further consultation.
Mr. Taiwo Oyedele, who chairs the Presidential Committee on Fiscal Policy and Tax Reforms, has expressed the urgent need for the passage of Tax Reform Bills to alleviate the financial struggles faced by many Nigerians. During an interview with Arise News, Oyedele responded to concerns raised by Borno State Governor, Professor Babagana Zulum, about the proposed bills currently in the National Assembly. He emphasized the importance of promoting equity through a proposed 60 percent derivation allocation, thereby enhancing VAT distribution and stimulating economic activities across Nigeria.
The urgency surrounding Nigeria’s tax reforms is underscored by the significant financial distress experienced by its populace, primarily due to excessive levies and soaring inflation rates. Small businesses face over 60 official taxes, not including more than 200 unofficial levies, further aggravating economic hardships. The proposed tax reforms are part of an effort to restructure the distribution of VAT revenues, particularly addressing inequities that currently exist in favor of more prosperous regions, which has led to resistance from local officials in less prosperous areas.
The discussions surrounding the proposed Tax Reform Bills have highlighted both the critical need for urgent fiscal reforms and the complexities introduced by regional disparities. While stakeholders express concerns over the implications of rapid reforms, Oyedele argues for swift action to address the financial emergency faced by many citizens. Moving forward, it is essential to balance consultation with timely legislative action to provide the necessary support for those impacted by multi-dimensional poverty.
Original Source: punchng.com
