A retired Permanent Secretary Plateau State Ministry of Finance/Planning Commission, a financial and Tax Expert, Nde Isaac Wadak has thrown his full weight behind the Tax Reform Bill submitted to the Senate by President Bola Ahmed Tinubu.
The Tax Reform Bill has stirred nationwide controversies, generated daily debates and occupied national discourse. Nde Isaac Wadak opined that Nigerian Tax Laws are archaic, hence the need for reform to reflect present realities.
He expressed concern the effect the new tax regime [if passed] will have on PAYE and Personal Income Tax of individuals and Small enterprises which are the top source of revenue in states like Plateau. According to him, care must be made to ensure true federalism and said the center should not be made too powerful.
In this exclusive interview with our Correspondent in Jos, the Plateau State Capital on Wednesday 11th December, 2024, Nde Wadak bears his mind on the Tax Reforms Bill before the National Assembly for consideration and formal legislative procedures as required by law before passage by the Executive Arm of Government.
Correspondent: Can I meet you Sir?
Respondent: Sure, My Name is Isaac Wadak, a Retired Permanent Secretary Plateau State Ministry of Finance/Planning Commission, Fellow Chartered Institute of Taxation of Nigeria, Fellow, Certified National Accountant and Member Intergovernmental Affairs Committee of the Chartered Institute of Taxation of Nigeria.
Correspondent: Looking at the Tax Reform Bill that the President is pursuing to see its passage by the National Assembly, what is your personal position on the overall bill?
Respondent: Well, I think the Nigerian the Tax Bill is a welcome development and so are the reforms. The Tax Laws which we are operating, some of them are ancient Tax Laws and there has been this cry over time of multiplicity of taxes and ease of payment. The reforms are meant to take care of all these; the archaic nature of the existing laws, the multiplicity of the taxes and how to make make them easy to explain and understand by the Tax Payers. So by and large, it is a welcome development.
Correspondent: What is your take on the proposed upward review of the Value Added Tax (VAT) from the current 7.5% to 10% first and then progressively to 15% by 2030?
Respondent: I don’t think the issue being contended is proposed rise in rates as the aspect that will affect the Consumers especially the poor People as you will notice that most of the things that directly affect the poor such as agriculture, educational materials, healthcare, electricity generation/transmission, transportation, renewal energy, baby products, fuel products etc are tax exempt. The issue being contended as you rightly observed from regional interest, I will want to say that you can’t overrule this interest complete. It came out of distrust and suspicion we have within ourselves in this Country. Everything that is being done is being read with so many kind of meanings no matter how good the intentions are. Again if you look at how the whole thing came about and the rush, it gave a lot of people room for suspicion about it. You know in this Country, there is a lot of trust deficit between the Leaders and the Lead. So looking at the rush and push at the National Assembly without public hearing, it passed the First and Second readings it gave rooms for a lot of suspicions. But I am pleased that the President himself waded in and has asked the Senate and Minister of Justice to listen to the dissenting voices and make sure that all manner of dissenting voices are heard and if there is need for adjustment and amend some sections of the Bill, let that be done before it is being passed. So it is democratic that dissenting voices are being heard and attended to.
Correspondent: Will there be any impact of the bill when passed to law on purchasing power of the Citizens?
Respondent: I don’t see how the bill if passed will affect the purchasing power of an individual as it is widely speculated because as it is right now, the common man who earns a certain threshold is exempted from paying tax, so it means he has more disposable income. It won’t cause inflation since those things that directly affects the common man are exempted from tax and it will not increase cost. This Bill targets the rich people mainly. It will give room for the common Man and the low Income People even in businesses. You can see the threshold, if you are in a business and don’t earn up to 25 million naira, you don’t have to pay VAT, income tax and others.
Correspondent: As a certified Management Consultant and Tax Expert, what will you tell Nigerians about this Tax Reform Bill?
Respondent: Nigerians should give the Bill a chance and I want them to tender their fears and worries since the bill will go for public hearing. They should use their organised professional bodies to tender their individual complains so that they will be reflected in the Bill.
Correspondent: By way of advise, what will you tell the President of the Federal Republic on this burning issue that has attracted national debates?
Respondent: Well, the President has heeded the voices of the People by calling on the Attorney General of the Federation who doubles as the Minister of Justice and the National Assembly to make sure that the dissenting voices should be listened to and the necessary amendments have to be made in the bill before it is being enacted.
Correspondent: Thank you very much Sir, it was nice having you speak on this burning national issue
Respondent: It’s been my pleasure.
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