By DAYO ADESULU
The Nigeria Extractive Industries Transparency Initiative (NEITI) has expressed strong support for the 2024 Tax Reform Bill currently before the National Assembly. NEITI believes the bill has the potential to modernize Nigeria’s tax framework and align it with global standards.
NEITI’s Review and Observations
In a statement by NEITI’s Acting Director of Communications and Stakeholders Management, Obiageli Onuorah, the agency outlined its findings following a detailed review of the draft legislation. The review, signed by NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, highlights several key aspects:
- Modernization of Tax Administration: The bill proposes measures to streamline tax processes, consolidate legal frameworks, and expand Nigeria’s tax base.
- Focus Areas: Notable provisions address the taxation of digital assets, resident and non-resident taxation, and introduce mechanisms to curb tax evasion.
- Fiscal Transparency: The proposed reforms demonstrate a commitment to fiscal transparency and efficiency.
“A detailed review of the Bill revealed that it has the potential to positively impact revenue generation, household livelihoods, job creation, and overall economic opportunities,” NEITI stated.
Strengths and Weaknesses
While NEITI lauded the bill’s intent, it also highlighted areas requiring improvement:
- Harmonization of Tax Laws: Sections 1 and 2 of the bill aim to unify tax legislation across the country but lack explicit guidelines for harmonizing federal and state tax laws.
- Clarification of Roles: The bill does not adequately address the roles of subnational governments in tax administration.
- Transition Management: NEITI stressed the importance of carefully managing the transition process and launching robust public awareness campaigns to avoid confusion.
Recommendations and Public Interest
NEITI called for:
- Strengthening provisions that affect the extractive industries, given their critical role in Nigeria’s economy.
- Greater clarity and trust in the bill’s provisions to address public concerns raised during debates.
- A focus on bridging gaps in the implementation of the proposed law to ensure its success.
“The public debate generated by the Bill underscores the overwhelming interest of Nigerians and the need for clarity and trust once it is passed into law,” the statement emphasized.
Conclusion
As the National Assembly deliberates on the 2024 Tax Reform Bill, NEITI’s endorsement and recommendations underscore its potential to transform Nigeria’s tax system. By addressing identified gaps and ensuring effective implementation, the bill could drive revenue growth, enhance economic opportunities, and foster fiscal accountability.
