As Ndume opposes tax increment, says it will impoverish Nigerians further
Ibrahim Quadri, Ignatius Okorocha
A former Deputy Majority Leader of the Lagos State House of Assembly, Hon Muyiwa Jimoh has cautioned federal government on increment in tax, saying the new reform being proposed provided an opportunity for the oil producing states to also demand proceeds of their crude oil.
Jimoh gave the insight in an interview with our correspondent on Wednesday, noting Nigeria runs a peculiar federalism and therefore should overlook the demands of the northern governors.
The 19 state governors in the Northern region had aired their strong displeasure on the recent Tax Reform Bill the Federal Government submitted to the National Assembly for approval.
The governors particularly rejected the proposed shift to a Derivation-based Model for Value Added Tax distribution.
They claimed that the proposed model would be at the disadvantage of the northern states and other less industrial regions.
The governors, under the auspices of the Northern States Governors’ Forum, voiced their strong opposition in a communique issued after a strategic meeting in Kaduna.
The communique was read by the Chairman of the NSGF and Governor of Gombe State, Muhammad Yahaya.
Jimoh said, “They have the right to reject it. They have come under the due process. I’m also not in support of any tax increment. The country is very tough now. An average Nigerian is crying. What to eat and drink is now the beginning of wisdom. So we need to be careful. Any increment in tax is anti-people. We must be careful on the way we go about things,” he cautioned.
Asked to speak specifically on the new model being proposed in the reform bill, the former lawmaker therefore stated that Nigeria practises a peculiar federalism and that is responsible for such comment by the leaders in the north.
“For instance, if beer is being sold in Lagos, whatever comes in should be the benefit of the State. They do put it into consolidated account and share it among all the states. Every state benefits even Zamfara where alcohol is prohibited.
“Now, in the reform bill, it is the state where the company is located that will benefit, it is fine. But, remember it is an opportunity for the oil producing states to also say whatever the proceeds of crude should belong to those states, that is the implication. That is how it should be under federalism but our own federalism is peculiar to us and when we see things that are peculiar to us, we must begin to overlook.”
Meanwhile, the Senator representing Borno South in the National Assembly, Mohammed Ali Ndume, on Wednesday, aligned with leaders of Northern extraction in opposing plans by the Federal Government to review the tax regime of the country upward.
Ndume, in a statement in Abuja, said the Federal Government must get things right first, expand sources of income for Nigerians and ensure that the people are living and not surviving, before reviewing the taxes upward.
The former Leader of the Senate said the middle class of the country is gradually fading, as they are being squeezed out by the high inflation.
“This tax they’re talking about, we are almost losing the middle class in Nigeria. It is either you have it or you do not have it. Those that are in the middle are being squeezed out. If Nigerians can pay for those taxes, it is okay.
“But in the current situation, increasing taxes is not an alternative at all. I will not support any increase in tax.
“Let us get things right first. Let people start living and not surviving. Let people have extra income, and then you can tax them. I like to use an example of common sense. Allow Nigerians to have enough blood in their body before you start asking for donation,” Ndume stated.
He said the managers of the economy want to make President Bola Ahmed Tinubu look bad before Nigerians by proposing any increase in tax. He called on the Minister of Finance, Wales Edun, the Federal Inland Revenue Service (FIRS), and other managers to stop misleading President Tinubu.
Ndume, who recently appreciated President Tinubu for his de-dollarisation policy, said: “The poverty is too much in the north. Let us be frank about that. So, you want to increase taxes again? Tax those people who can afford it. Those who can afford the taxes in Nigeria, I do not want to be particular about it, are not even paying the taxes. These big companies do not even declare their income, not to talk of getting the appropriate taxes.
“I am one of those opposing that tax bill in the National Assembly. I am not going to support it. In fact, I am going to start campaigning against the increase in tax for now because it does not only affect the north but the average Nigerian.
“I am not saying people should not pay tax, but do not go and tax people that are barely struggling to survive. You are paying somebody N70,000 as a minimum wage, and all of a sudden, the price of fuel went up to N1,000. It means that if you put the arithmetic together, you see that you would have continued paying me the N30,000 and allow the litre of fuel to be N100.
“It is like giving you with one hand and taking it with the other hand. Let the tax authority focus on those who are supposed to pay tax. For example, in Abuja, if you go round, there are a lot of properties and they are not paying taxes. Fortunately, you have Nyesom Wike who stands up to do something about it.
“People are not paying property taxes. These banks, for example, are making tons and tons of money, and they are not paying taxes. And they are collecting taxes. If you transfer money, they are collecting taxes. If you receive money, they are collecting taxes. And they declare profits. Go and check their taxes. Now you want to squeeze somebody who is barely trying to survive because they are many.
“You need to start from somewhere that is acceptable. I, at one time, proposed a bill for communication and phone owners to pay tax. It didn’t see the light of the day.
“You are talking about Abuja here. Many people do not have access to mobile phones. Anybody who can access a phone should be able to pay tax.”
