Outcry against Tax Reform Bills misplaced, declares Senator Umeh

THE NATION

Senator Victor Umeh (LP – Anambra Central) said on Monday that there was nothing to fear regarding the tax reform bills currently before the National Assembly for consideration and passage.

President Bola Ahmed Tinubu transmitted four tax reform bills to the National Assembly for consideration in October, which, according to him, aimed to strengthen Nigeria’s fiscal institutions and ensure the actualisation of his administration’s comprehensive development plans for the country. Tinubu’s introduction of the bills provoked a public outcry, sparking widespread debate across Nigeria.

Umeh, who spoke to reporters in Abuja, noted, however, that amidst the resentment against the proposed tax reforms, the Federal Government only needs to do what is necessary by properly marketing the bills to Nigerians for a better understanding of their contents to clear any doubts.

He maintained that many issues have gone wrong in the country, resulting in citizens’ loss of confidence in governance, as they are unwilling to pay the taxes charged by the government, believing that these taxes will not be judiciously utilised for their intended purposes.

Umeh, who is the Chairman of the Senate Committee on Diaspora Matters and Non-Governmental Organisations (NGOs), further observed that reforms are necessary steps and actions that the government must take to bring about the changes that would guarantee the growth of the country’s economy and improve life for the people.

“Globally, what people don’t like to do is pay tax. Nobody likes paying money. However, a system that works effectively would earn the confidence of its citizens to pay taxes. When you charge a tax that people are unwilling to pay and subsequently use force to collect it, it is not a good tax.

“Any tax collected by force is not a good tax. A good tax is one that people will willingly pay. Hence, it will be easy to administer, and the collection process will be straightforward.

“If they know that the money they are paying is used by the government to provide infrastructure and services, people will be more persuaded to pay tax. But in the current state of Nigeria, we find ourselves in a situation where the Nigerian people have lost faith in governance.

“So, any action that is geared towards taxing citizens will receive immediate rejection. And that is what we are witnessing with the tax bills.

“People have not been able to read the bills. They have continued to rely on social media posts to condemn the proposed tax reforms. I have read the tax reform bills, and I can tell you that as much as we will be conducting consultations, I have not seen anything in the bills that is particularly harmful and should warrant total rejection.

“What we need to do is explain and ensure that people understand the purpose and intent of the bills. Therefore, the government has a great deal of work to do to market its objectives to the Nigerian people and undertake actions that will promote confidence among Nigerians.

“The drivers of the government should be able to show that they are ready to be like ordinary people. So that when you ask Nigerians to pay money, they will know that they are not paying this money for you to buy luxuries for yourself and your family,” Umeh stated.

He added: “If you subject the tax reform bills to critical analysis, you will see that most of the resentment and outcry is misplaced. I have studied the bills, and I don’t believe there should be any cause for alarm…