Tax reform bill will curb poverty, empower Nigerians — Presidency

The Presidency has said that the Tax Reform Bill will curb poverty and empower ordinary Nigerians.

The Presidency made this known through the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele.

Oyedele made this known at the Spokespersons’ Summit organised by the Nigerian Institute of Public Relations in Abuja.

He expressed strong optimism about the sweeping changes the bill would bring, especially for the low-income earners and small businesses across the country.

The chairman said that key highlights of the reform included the exemption of low-income earners from paying the Personal Income Tax (PAYE) and removal of VAT from basic essentials such as food, education, and healthcare.

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He added that it included a zero percent Corporate Income Tax (CIT) rate for small businesses, adding that the bill had great benefits, especially for the masses, although it was welcomed with misconceptions and attacks.

Oyedele said: “This is because the issues of tax and taxation are not the most attractive to the ordinary persons because it is hard to part with your money.

“It is even harder when you part with your money and you cannot tell what exactly the government is using it for that benefits you.”

He said the approach for the reform was to try and understand what the issues were and where the problems were coming from.

He added: “Then we will use data to engage with the people and design a solution for Nigeria that is made by Nigerians for the Nigerian people.

“That is exactly what we have done with the tax reform bill which is now nearing passage for the President to sign.”

According to Oyedele, the government is positive that as soon as implementation begins, Nigerians will see the real positive impact on their day-to-day living, including low income earners being exempted from taxes.

He said: “This is because we want Nigerians to be able to create wealth and become successful.

“When they make it big time, then they will pay taxes.

“Not the other way round.

“So, we believe that this message is resonating with the Nigerian people.

“It is still a long way to go, but we are happy to continue with the journey.”

Oyedele commended NIPR for putting the summit together and for discussing issues of government policies for the clearer understanding of Nigerians.

The President and Chairman of Council, NIPR, Dr. Ike Neliaku, said the communication ecosystem should always be considered when formulating any government policy.

Neliaku said this was because the communicators have the gift of communicating even the most difficult policies to the people.

He added that they would look at such policies and guide strategic communication, adding: “Which is the when, what, how, where, which, it answers all those questions.

“So, when you say this is what we want to do, how best should we do it?

“It is the work of the experts and not quacks, those trained to come up with the strategies to communicate that.

“The tax reform is what this nation needs at this point, but it was essentially misunderstood because of the way it was introduced and the mischief makers took advantage of that to do what they wanted.”

Neliaku said that was why NIPR and its partners in the communication ecosystem had promised to work with the government to develop a tax communication framework.

He said that it was also being done in the areas of climate action, science communication, and across many sectors to communicate reforms so that the child is not killed even before it is birthed.

He encouraged spokespersons to acquire knowledge, understand trends and issues in order to be effective and to speak well and informed.

Dr. Nkechi Ali-Balogu, a Fellow of NIPR, said there was the need to view taxation with the gender lens.

She equally said that there was the need to make exemptions for women.

Ali-Balogun said that most women as breadwinners these days as well as single mothers  should enjoy tax exemption to empower them to provide for their families.

She commended NIPR for organising the summit, adding that it had broadened her horizon on national issues.