CSOs back tax reform bills, call for non-partisan approach

Civil Society Organisations (CSOs) have expressed their support for the tax reform bills currently under consideration by the National Assembly but have cautioned against politicising the process.

Speaking on behalf of the CSOs at a public hearing on the bill organised by the House of Representatives, the Executive Director of the Peering Advocacy and Advancement Centre in Africa, Ezenwa Nwagwu, emphasised that the proposed tax reforms must be pursued through a non-partisan approach to achieve their intended objectives.

Nwagwu stated that a stable and well-structured tax system would be of greater benefit to all Nigerians, regardless of political affiliations. Expressing support for the proposed reforms, he described them as a step towards a fairer and more efficient tax system that would enhance revenue generation without placing undue burdens on businesses and individuals.

Addressing the proposed changes to the VAT sharing formula, he acknowledged concerns raised by some stakeholders regarding the derivation principle. While this principle is expected to benefit states with higher economic activity, he noted that it might disadvantage less industrialised regions. However, he argued that the tax reforms would incentivise other regions to boost economic activity, create jobs, and generate more VAT revenue. He also called for post-reform monitoring mechanisms to track progress, address challenges, and ensure continuous improvement.

Speaking further, Nwagwu urged the government to ensure transparency and public accountability in implementing the reforms to build trust and encourage compliance among taxpayers.