- Tinubu had in October asked the national assembly to pass the bills into law
- The tax reform bills had also passed a second reading in the senate.
The Presidency has issued a clarification regarding the proposed Tax Reform Bills, stating that they do not advocate for the elimination of prominent agencies such as TETFUND, NASENI, or NITDA.
According to the State House, the primary objective of these reforms is to simplify Nigeria’s tax system, thereby reducing the burden on businesses and fostering investment.
In a statement released on Monday, December 2, 2024, Bayo Onanuga, Special Adviser to President Bola Tinubu, emphasised that the bills seek to consolidate multiple taxes into a single levy, ensuring that agencies continue to receive funding through budgetary provisions.
The proposed changes aim to modernize outdated tax laws, promoting national growth without economically disadvantaging any region.
Part of the statement read: “The tax reform bills will not make Lagos or Rivers more affluent and other parts of the country, as recklessly canvassed, poorer.
“The bills will not destroy the economy of any section of the country. “Instead, they aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living.
“Contrary to misinformation, the bills do not suggest that NASENI, TETFUND, and NITDA will cease to exist in 2029 after the passage of the bills.
“Government agencies, such as NASENI, TETFUND, and NITDA, are funded through budgetary provisions with company income tax and other taxes paid by the same businesses that are being overburdened with the special taxes.
“Tinubu initiated the Tax and Fiscal Policy Reforms to streamline tax administration in Nigeria and create a business-friendly environment.
“For decades, Nigerian businesses, investors, and private sector players have complained about the excessive tax burden, including taxes earmarked for various government agencies and initiatives.
“The multiple taxes have complicated the economic environment, making Nigeria less attractive to investors and hindering business growth.
“Some companies have relocated to other countries due to these challenges. Nigeria cannot continue on this path and expect to deliver prosperity to its people within the next 20 years.
‘The proposal, as outlined in section 59(3) of the Nigeria Tax Bill, seeks to consolidate earmarked taxes imposed on companies and replace them with a single tax to be shared with key agencies as beneficiaries until 2030.
“The proposed timeframe allows affected agencies to explore alternative funding sources, in addition to budgetary allocations, in line with the constitution and international best practices.
“It is inaccurate to assume that changing an agency’s funding source is equivalent to abolishing it. Notably, countries leading in education, science, engineering, and information technology do not have similar earmarked taxes.
The Presidency urged Nigerians to participate in National Assembly hearings and engage in informed, fact-based discussions to avoid unnecessary divisions and confusion.
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