DEMYSTIFYING THE  NEW TAX REFORM BILL IN NIGERIA


_"Nigeria has been inundated by a disturbing record of intractable economic dislocations resulting in economic hardship of acute poverty and hunger, occasioned by the aftermath of fuel subsidy removal, insecurity, wanton corruption, and so on. Any attempt to place more taxes on the people who are yet to recover from the shocks of recent economic policies of the Government especially that of the fuel subsidy removal slammed on the people whose presumed benefits are yet to come to fruition could only be considered as one of greatest misdeeds of any government whose primary responsibility is to ensure the wellbeing of its citizens."_

The recent debate on the pros and cons of the proposed new tax bill which has already been passed for second reading by the National Assembly has generated an excruciating level of heat and pandemonium in the public opinion.

The proponents of the contentious Bill hold the view that the new tax law is necessary for the general overhauling of the Country's tax regime and that if the tax reform is well implemented states are likely going to get more revenues, low-income earners will be exempted from tax, and above all is the organization of the tax collection system which is necessary to promote efficiency and accountability in the tax administration.

However, the opponents of the Bill have raised several concerns about the negative economic impacts the Bill portends especially to the Northern part of the Country despite its presumed merits. Many portions of the  Bill according to them are full of fault lines which if not addressed will portend a great deal of danger to the economic survival and wellbeing of many States in the Country.

First of all, there is skepticism from the opponents of the Bill about its overall intent generally. According to them, the Bill has a subtle regional agenda beyond the national one it's painted to achieve. It's a systematic attempt to perniciously surcharge some regions for other states especially Lagos in a more subterranean fashion.

Specifically, looking at Section 77 of the new Bill which talks about the VAT Redistribution Formula;  the Section sought a transition to a consumption-based VAT distribution model emphasizing derivation i.e. the location of consumption as against the equitable or population-based VAT redistribution.

This placed Lagos at the edge of advantage above every other state as Lagos currently generates over 50% of Nigeria’s VAT due to its reputation to be the industrial hub of the Country with a high concentration of multinational companies, high retail activities, luxury consumption, real estate, location of commercial and fintech Headquarters and so on.

In addition, the timing of the proposed Bill constitutes another major bond of contention to the objectivity of the Bill. Nigeria continues the be inundated by a disturbing record of intractable economic dislocations resulting in economic hardship of acute poverty and hunger, occasioned by the aftermath of fuel subsidy removal, insecurity, wanton corruption, and so on. Any attempt to place more taxes on the people who are yet to recover from the shocks of recent economic policies of the Government especially that of the fuel subsidy removal slammed on the people whose presumed benefits are yet to come to fruition could only be considered as one of greatest misdeeds of any government whose primary responsibility is to ensure the wellbeing of its citizens.

Academically, this negates the 'principle of Fairness', one of the four core principles of taxation propounded by Adam Smith which not only demands but requires that taxation should be compatible with taxpayers’ conditions, including their ability to pay in line with personal and family needs.

Since this is an executive Bill, it's expected to have a buy-in of all components of the executive arms in the Country. Unfortunately, the Presidency remains adamant and indifferent despite the recommendation of NEC and Northern Governors Forum one of the important components of the executive arm which advised that the Bill be suspended to allow for wider consultations to establish the efficacy of the Bill and amend the contentious portions in it.

Moreover, the kind of energy the Presidency is dispensing to get a sensitive Bill of this nature passed by the National Assembly is enough to provide ground for suspicion from its opponents. The Bill is sadistic in expectation, ruthless in execution, and above all selfish in motive. It's deliberately aimed at hurting innocent citizens and designed to permanently impair the progress of especially the North.

 WAYFORWARD

In fairness to the proponents of the Bill, the Bill, without doubt, heralds some degrees of advantages, especially in terms of the reasonable organization of the tax system which the new Bill proposed. However, the concerns raised by the opponents of the Bill are too weighty to be overlooked particularly with regards to the contentious issue of redistribution of VAT based on the derivation model which placed most states on the disadvantaged side.

The Presidency and the proponents of the Bill alike should eschew the monopoly of wisdom and take heed to the advice of NEC, NGF, and other well-meaning Nigerians by withdrawing the Bill from the National Assembly to allow for wider consultations until the contentious clauses of the Bill are either amended or removed.

Alternatively, the Bill can be implemented in phases so that the contentious clauses could subsequently come in other phases after it might have been addressed and agreed upon by all stakeholders.

But most importantly this scenario should serve as a wake-up call and an eye-opener to the Northern states that are largely hit by the new Bill if eventually passed. The Northern states especially our Governors must live up to their responsibilities by genuinely scouting for ways that reduce our overreliance on monies coming from FAAC.

We must bitterly admit that the era of overdependence on monies from FAAC is almost gone and hence, every Northern state should at least put in place a team of economic experts to review its financial policies and also suggest innovative means of broadening its revenue base as well as to seek ways of diversifying their economic activities in line with the current economic realities.

Our Governors must come to terms with the stark reality of the fact that the era of Governors living in opulence with FAAC allocation at the expense of the poor masses is gone. They must be alive to their responsibilities, turn around the economy of their states by implementing reforms that align their states with the current economic realities of the 21st Century, and above all, work for the people. I sincerely believe that we have the wherewithal to do that.

THIS IS NOT THE TIME FOR NOISE MAKING, IT'S TIME FOR HARD WORK AND GETTING THE JOB DONE.

Most of us fear death

Death is inevitable we will all surely going to test, the only thing I'm afraid of about death is the state of in which to die and what to face in grave if not I'm not afraid because either we afraid or not we are to die , May we have peaceful death not pieces death

success is the accomplishment of your plans

Wonderful definition
But my opinion is success when you are able to put smiles on thousands face either it be from your families, relatives or societies, that's when I realized that I'm successful but your definition is quite okay, you can also have plan to put smiles on people's face when you accomplish that as you subscribe d to is called wonderful successful

Minimum wage in Nigeria it can lead to job loss, as the employers can afford to pay workers high wages. It can lead businesses to move overseas, where labour cost are cheap. Some people argue about the high minimum wage that it can lead to inflation, as the business may pass the cost of higher wages to consumers in form of high price. Additional higher minimum wage can help to reduce poverty and improve standard living.The main concern about minimum wage it causes job loss, as the employer's may not be able to afford to pay their worker's.Do you think these concerns will bring benefits of the minimum wage?

Minimum wage is something good but the question we supposed to ask ourselves as a concern citizen of the country is what are the percentage of unemployment and that of employees if the percentage of unemployment is higher than that of employees minimum wages is just a disaster to the societies because the more government increases the minimum wages that's how things in commodity will be increasing continuously and you as a small scale business owners how do you think you are going to survive, without affecting your business and that of your well being as well

Quote from: bisdak40 on July 24, 2024, 05:01:31 PM

Quote from: bitterguy28 on July 24, 2024, 09:01:59 AM

anyone with money will earn anyone's respect

be it because they want something from you, or they idolize you or they just genuinely respect you for things you have done with or without your money

people would argue that both respect and money are difficult to earn but having money would make a lot of things easier imo it would depend on your character what you can do with your money to earn the respect that everyone wants to earn so badly

 Money can influence people where they will treat you like a VIP but it is not guaranteed that the respect of the people is genuine because respect is earned not bought respect truly comes from you character not by money

While you may be right and saying the truth, it's also important to know that respect could be earned and also lost, there's no respect that'll last forever, those who buy respect with their money may lose the respect when they eventually go broke or bankrupt, and even those who earned respect through their deeds or services rendered, there's also every possibility of losing that respect by just a single act, so either ways, respect can still be withdrawn after given. So it really doesn't make any difference how you earned the respect, whether through your deeds or through your wealth and power, what's more important is earning people's respect and maintaining it and avoid losing it, either by continuing in your good services which earned you the respect or by maintaining your financial status and avoid going broke.

Money over respect, if you are able to use money wisely respect will definitely follow, imagine with the high cost of living that we're facing now let's say in your community you're able to feed at least 75% out of 100% without looking down on anyone you will definitely earn their respect to the extent that some traditional rulers will no choice than to give traditional title which is one of the things that bring respect in both urban and rural communities

I definitely wouldn't say it's the root of all evil, but it definitely gives entities who are evil more power and control.  Money is just a tool, ultimately.  It's unfortunate that being evil almost seems to make it easier for you to obtain more money, it's not always the case but you can definitely find more cases of corruption to get money than you can altruism to get money.

My view is money is not the root of evil but the love of the money is the root of evil,  perhaps we can say the root of evil is the mindset of the one who possess it, some love money and they are not evil, money is something that we need to love, our daily activities today we need money to take of them 

Food shortage is one situation in a nation that causes some consequences. Some countries are liable to food shortages and then they're left with less economic growth which they have to fix. Food and Agriculture has its own impact on the economy of a country and if left unattended to will definitely cause some negativities. There are correction processes that must be followed by countries that experience shortage and the key process should be diverting the focus of that nation to solely agriculture.
  It's not an intentional action that causes shortage, sometimes it's climatic, sometimes it's due to less resources, so in such situations, there has to be alternative ways to generate resources for these nations. The government in turn ensures that they infuse more on planting and harvesting, so even as the food shortage tend to occur, there'll always be residual foods in store that'll go round and be available for the people.

Nigeria has a case study
A state called Niger State in Nigeria has the largest land mass in which her new state confidently promised them to make use of the opportunity of the land mass in other to provide her citizenship with the food security, the state is capable to feed Nigeria as a country if state make use of the opportunities with that it's will bring the country to lime light
Wise saying that food is life without food we will be no more
I pray and hope for the project to yield positive outcome

Quote from: Sim_card on April 15, 2024, 10:19:35 AM

Quote from: JoyMarsha on April 07, 2024, 09:47:10 PM

I prefer alcohol but it will be not be an excessive but a moderate intake inside my body system so that I won't feel tipsy by acting strange at the end of the day. Although alcohol intake can be good or bae to some people because they do take it to feel happy and forget most of their problem, have a relaxed mind, and have morale to face the crowd and speak out in the public. Which in the real sense, they won't find courage to do so without the intake of alcohol.

Alcohol can be a good have messed some people because of how they have turned it to be, as what they will make before they can have a rel

Alcohol should not be used as a motivator or to have boldness in relating to people in public, it means that when that person did not see alcohol anywhere he will be a mess to himself, because he would not be able to face the crowd or relate with people in the right way. India hemp is not bad, because it is a natural plant that is smoked to get high and inspired. Any drugs made through refining process is not good because it would be mixed with chemicals that are harmful to man's health. Whatever is not good for your health, there is no need taking it, because your are endangering your life.

You're absolutely right...
Using alcohol or other substances as a way of mustering confidence in situations that requires one to naturally be bold may damage your social abilities.
You'll find it pretty difficult to interact with people if you consume alcohol, this can easily cause addiction and substance addiction isn't something that should happen to someone.

As regards to Cannabis, it's true that when it's used responsibly, it could have positive uses and benefits to the society but not when used excessively or abused like it's been done in our society today, we can all see how negatively the impact is on the society today.

Quote from: princessgirl on November 12, 2017, 04:11:07 PM

i prefer alcohol

I prefer alcohol because Drag is very dangerious every time and slowly it gives you death and society also neglected you. On the other hand alcohol may batter than Drag because many times men easily take alcohol as simple habit and it may not does mass problem for health.

World health organization go against the both because they are harmful to our lives, taking hard drugs leads to madness while taking alcohol also leads to madness as well