By Lucky Isibor
The Conference of Non-Governmental Organizations (CONGOs) has thrown its weight behind President Bola Tinubu’s Tax Reforms Bill before the National Assembly, noting that when passed into law, the new tax law has the potential to enhance greater revenue generation and foster sustainable economic growth.
The umbrella body of non-governmental organisations in Edo State made its position known in a position paper signed by the Conference President, Comrade Bathelomew Okoudo and another Official, Aidomoaki Imonitie Moses (Esq),sent to the Chairman of the National Assembly and President of the Senate of the Federal Republic of Nigeria, Senator Godswill Akpabio and called for the protection of the poor and venerable as the National Assembly is fine tuning the bill for final passage.
They urged the National Assembly to ensure that the tax bill when eventually passed into law doesn’t increased the tax burden on low-Income individuals, tax excemptions on essential services to reduce the burden on low income earners and vulnerable people; progressive taxation structure, social safety nets for the poor and vulnerable and public engagement, consultation and transparency in tax administration.
According to the paper titled, “Support for the Proposed Tax Reforms with Suggestions for Adjustment to Protect the Poor” states that, “We recognize the potential benefits these reforms could bring to the nation’s economic development. However, while we support the overarching goals of these reforms, we urge the government to give special consideration to a few areas that, if left unadjusted, could negatively impact the most vulnerable members of our society. As you are aware, the poor and working-class Nigerians, who already face significant economic hardships, could be further burdened by certain aspects of the proposed tax changes.
“Our concerns primarily relate to the following points: Increased Tax Burden on Low-Income Individuals: While the broader reform initiatives include increased taxes on high-net-worth individuals and large corporations, we caution that the implementation of indirect taxes such as VAT could inadvertently increase the cost of living for low-income earners. It is essential that the government ensures that the poorest segments of society are protected from undue hardship, especially in light of inflationary pressures and the rising costs of essential goods and services.
“Exemptions for Essential Goods and Services: We respectfully request that the government considers expanding VAT exemptions to include critical goods and services such as healthcare, education, and basic foodstuffs. These areas should remain tax-free to ensure that the most vulnerable Nigerians, particularly those living in poverty, are not further excluded from essential services due to price hikes.
“Progressive Taxation Structure: We advocate for a more progressive taxation structure that adjusts for income disparities and ensures that those with the greatest ability to pay contribute a fair share to the national coffers. While we appreciate the government’s commitment to strengthening corporate taxation, it is vital that the tax burden on individual citizens remains fair and proportionate to their income levels, particularly in low-income brackets.
“Social Safety Nets for the Poor: To mitigate any adverse effects of these reforms on the poorest Nigerians, we strongly recommend that the government establish or strengthen targeted social safety net programs. These could include cash transfers, food assistance, and health subsidies, which would help cushion the effects of higher taxes on basic goods and services.
“Public Consultation and Transparency: Lastly, we emphasize the importance of public consultation and the inclusion of civil society organizations in the ongoing dialogue about these reforms. Transparency in the implementation of the tax reforms and the allocation of tax revenues will foster greater public trust and ensure that the funds collected are used to directly benefit the citizens who are contributing to the national budget”.