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Oyedele Clarifies Purpose of Tax Reform Bills: Economic Growth, Not Revenue Increase

Published by admin on December 3rd, 2024.

Oyedele Clarifies Purpose of Tax Reform Bills: Economic Growth, Not Revenue Increase

Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, addressed concerns on Monday regarding the tax reform bills currently under review in the National Assembly. He emphasized that the primary goal of these reforms is to enhance Nigeria’s economy and promote shared prosperity, rather than focusing on raising revenue as some have claimed.

Oyedele shared his views during a conversation on Channels Television’s Townhall on Tax Reforms. The bills have recently sparked controversy, particularly among state governors, with some calling for a delay to allow for more discussions. On Sunday, Borno State Governor Prof. Babagana Zulum urged his colleagues and northern stakeholders to oppose the bills, warning that their implementation could harm the region’s economy.

However, Oyedele argued that many critics of the bills have misunderstood their objectives. He pointed out that Nigeria’s economy is struggling, marked by widespread poverty and a lack of sustainable growth, and that addressing these issues is key to achieving shared prosperity.

“Our current fiscal and tax systems are a major obstacle to economic growth,” Oyedele said. “The goal of the reforms is not to increase taxes, as some people assume, but to restructure the economy so that it can support prosperity for all. When businesses thrive and people succeed, tax revenue will naturally increase.”

Addressing concerns about the relationship between the presidency and the National Assembly regarding the reform bills, Oyedele explained that the aim was to complete the reforms within a year, as Nigeria could not afford to delay modernizing its outdated tax laws. “Some of our current tax laws date back to colonial times,” he noted. “This is a chance to create laws that are suited to Nigeria’s present and future, made by Nigerians for Nigerians, with a focus on driving prosperity.”

Oyedele also assured that the reforms are designed to ease the tax burden on low-income earners. Under the new provisions, individuals earning less than N83,000 per month, or N1 million annually, would be exempt from taxation.