MEET FRANK OSHANUGOR
By Frank Oshanugor
A former Commandant with the Nigeria Security & Civil Defence Corp (NSCDC) Dr. Nnamdi Okonkwo like some other discerning Nigerians, has taken a swipe on parts of the recently introduced Tax Reform Bill arguing that even though the government aims to increase revenue and stimulate economic growth, the Bill would disproportionately burden Nigerian citizens, exacerbate the existing infrastructure deficit, and perpetuate corruption.
Speaking with ATLANTICNEWSONLINE on Wednesday in his Lagos office, Okonwko who is currently the Managing Director/Chief Executive of Boyson Nigeria Limited – a security consulting outfit noted that the Tax Reform Bill has already sparked off intense debate among citizens, policymakers and experts, which is an indication that the Bill is largely faulty and could not be in the interest of Nigerians.
According to him, with the introduction of several new taxes by the proposed Bill, there would certainly be over-taxation of Nigerian Citizens. These new taxes include a 5% excise duty on telecommunications services and a 5% excise tax on lottery and gaming income. “These additional taxes will increase the financial burden on Nigerian citizens, who already struggle with high levels of multifaceted poverty and unemployment.
His second argument is that the Bill if passed into Law as it is, would lead to infrastructure deficit and misallocation of resources. “This is despite the government’s claims that the tax revenue will be used to fund infrastructure development because Nigeria’s history of corruption and mismanagement of public funds raises concerns about the effective allocation of resources.” The bill does not provide adequate safeguards to ensure that tax revenue is used efficiently and effectively to address the country’s infrastructure deficit.
Dr. Okonkwo further posited that the Bill has the tendency to allow the perpetuation of corruption as its “complex tax framework and numerous exemptions create opportunities for corruption and tax evasion. He contended that without robust institutional mechanisms to prevent corruption and ensure transparency, the tax reform bill may inadvertently perpetuate the very problems it aims to address.
In the light of the foregoing, he has therefore advised that since the Tax Reform Bill will have far-reaching negative consequences for Nigerian citizens and the economy, the government should focus on addressing corruption, improving tax administration, and ensuring that existing tax revenue is allocated efficiently and effectively to address the country’s infrastructure deficit rather than introduce new taxes.
