The Governor of Imo State, Hope Uzodimma, has said the Tax Reform Bill would address the inefficiencies in the country’s tax system.
Governor Uzodimma said Tax Reform Bill, when passed into law, would be to the benefit of the entire country.
In a statement on his X handle Friday afternoon, he advised against politicizing the bill.
He called for objective criticism of the bill and a critical study of the document.
“As a nation, we have faced challenges of multiple taxation and overlapping tax collection by various agencies, creating inefficiencies in the system. This has given rise to the Tax Reform bill carefully drafted to address these issues, aiming to streamline our tax regime for better economic growth and public welfare.
“Given that it is an Executive Bill, it is important that we approach it with seriousness, objectivity and not to be trivialized. Instead, it must be studied thoroughly to understand its intentions and areas of potential impact, and where necessary, objections or suggestions can be raised for review to ensure the bill serves the public’s best interest.
“It is crucial that we do not politicize the bill because it is for the collective good of the nation, not for the interest of any individual,” Governor Uzodimma said.
Meanwhile, the Chairman of the Presidential Committee on Tax and Fiscal Reform, Taiwo Oyedele, on his X handle Friday afternoon, explained that the bill when passed would help to reduce inflation and not increase it.
He added that while there would be an increase in Value Added Tax (VAT), unlike the 2019 proposal, inflation would be reduced.
“Some people have expressed the view that the proposed VAT rate increase as part of the Tax Reform Bills will fuel inflation and lead to more hardship for the people.
“The VAT reform, including the proposed increase in VAT rate, is part of a package involving several measures designed to reduce, not increase prices and therefore will not lead to inflation.
“The major actors argued at the time that an increase in VAT rate will lead to inflation, which would reduce the purchasing power of Nigerians and increase economic hardship in the country.
“However, unlike the 2019 VAT rate increase proposal which was not accompanied by measures to reduce costs, the current proposal is a package of reform, which is much broader than just a rate increase.
“The reform involves several measures to reduce production cost, reduce the incidence of VAT on most essential consumptions, and exempt more small businesses from charging VAT,” Oyedele explained.