Peter Obi Advises FG to Allow Public Debate on Tax Reforms

By Samaila Emmanuel Bzugu

The 2023 Labour Party presidential candidate and former governor of Anambra State, Peter Obi, has urged the Federal Government to engage citizens in a national debate before passing the tax reform bills into law. Obi emphasized that although the bills are crucial for the country’s development, they must be subject to robust public debate and deliberation.

The bills also propose the creation of a centralized tax agency, the Nigeria Revenue Service, to replace multiple tax collection bodies

The tax reform bills, introduced by President Bola Tinubu’s administration, aim to overhaul Nigeria’s tax system. However, they have generated controversy, with northern governors calling for their withdrawal. Obi stressed the importance of public hearings, allowing diverse opinions and inputs to be reflected in public policy.

Key aspects of the tax reform bills include a phased increase in Value-Added Tax (VAT) from 7.5% to 15% by 2030, a 5% excise duty on telecommunications services, and adjustments to corporate income tax rates. The bills also propose the creation of a centralized tax agency, the Nigeria Revenue Service, to replace multiple tax collection bodies.

Obi’s call for public debate echoes concerns raised by various stakeholders, including state governments and senators, who have expressed apprehension about the potential implications of the tax reforms on resource distribution and economic impact on regions.