The senator representing Anambra Central on the platform of the Labour Party (LP), Victor Umeh, has said there is nothing to fear about the Tax Reform Bills currently before the National Assembly for consideration and passage.
President Bola Ahmed Tinubu had, in October, transmitted four Tax Reform Bills to the National Assembly for consideration. The President had said the proposed reforms were aimed at strengthening Nigeria’s fiscal institutions and ensuring the actualisation of his administration’s comprehensive development plans for the country.
The President’s introduction of the Bills had ignited public outcry, leading to widespread debates across Nigeria.
Umeh, who addressed reporters yesterday in Abuja, noted that despite the criticisms against the proposed tax reforms, the Federal Government only has to properly market the Bills to Nigerians to enable them have a better understanding of the contents to clear their doubts.
The lawmaker, who is the Chairman of the Senate Committee on Diaspora Matters and Non-Governmental Organisations (NGOs), stressed that reforms were necessary steps and actions the government needed to take to bring about the changes that would guarantee the growth of the economy and make life better for the citizens.
“Globally, what people don’t like to do is to pay tax. Nobody likes to pay money. But a system that has worked effectively would have the confidence of its citizens to pay tax. When you charge tax that people will not be willing to pay and then you use force to get the tax, it is not a good tax.
“Any tax that you use force to get is not a good tax. A good tax is one that people will be willing to pay. And so, it will be easy to administer, and the collection process will be easy.
“If they know that the government would pay the money they are paying as tax to provide infrastructure and services, people will be more persuaded to pay tax. But in Nigeria, we are in a situation where Nigerians have lost faith in governance.
“So, any action that is geared towards taxing the citizens would receive immediate rejections. That is what we are seeing 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. I can tell that in as much as we will be doing consultation, I have not seen anything that is very harmful in the Bills that should warrant a total rejection.
“What we need to do is to explain and ensure that people understand the purpose and the intent of the Bills. So, the government has a lot of work to do to market its objectives to the Nigerian people and do things that will promote confidence on the part of Nigerians.
“The drivers of the government should be able to show that they are ready to be like ordinary people so that when you are asking Nigerians to pay money, they will know that they are not paying this money for you to go and buy luxuries for yourself and your family,” Umeh said.