The business sector recently expressed concerns about proposed tax reforms, particularly highlighting the potential negative impacts of increasing the Value Added Tax (VAT) on investment in the economy. Various organizations, including the Association of Capital Market Academies of Nigeria and the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, raised objections to the planned VAT hike and the removal of certain tax bill sections related to free zones.
During a public hearing by the Senate Committee on Finance, the Organised Private Sector voiced its reservations about the tax bills, which include the Joint Revenue Board Bill, the Nigeria Revenue Service Establishment Bill, the Nigeria Tax Administration Bill, and the Nigeria Tax Bill. While the Senate passed the bills for a second reading, the House of Representatives faced opposition, particularly from northern lawmakers and governors.
Despite the pushback, President Bola Tinubu urged stakeholders to participate in public hearings and provide feedback. Notably, a compromise was reached regarding VAT sharing formula after discussions between the Nigeria Governors’ Forum and a committee led by Taiwo Oyedele.
ACMAN’s President, Prof Uche Uwaleke, expressed support for the tax reforms while cautioning against the proposed VAT increases. He emphasized the importance of tax policies in developing the capital market and the economy, welcoming the fiscal incentives outlined in the bills.
Various organizations, including NACCIMA and ANAN, presented their perspectives and recommendations on the tax reform bills. The Revenue Mobilisation Allocation and Fiscal Commission endorsed the bills, highlighting their potential to stabilize the economy and allocate funds for infrastructure development.
Senate President Godswill Akpabio called for collaboration between government tiers and the private sector to drive a new tax administration regime aimed at revitalizing the economy and creating job opportunities. The Arewa Consultative Forum submitted a detailed report to the National Assembly, offering insights and suggestions on the tax reform bills, emphasizing the need for fair, efficient tax laws that promote economic growth and development.