New tax law implementation requires strict oversight, transparency — Political scientists

The Nigeria Political Scientists Association (NPSA) on Friday accused the federal government of putting the cart before the horse in the implementation of the new tax law.

The association in a statement signed by Hassan Saliu, a professor, and president of NPSA said it aligned with the feeling that more avenues were being created for unaccountable governance to thrive through the new tax law.

“The idea of warehousing the collections in organisations that are already juggling a lot of responsibilities, without regard for the dangers involved, lends credence to public concerns about the aftermath of the collections.

“A critical examination of the new tax law reveals several concerns. Firstly, the issue of multiple taxation, a longstanding challenge in Nigeria’s tax system, appears to persist, with various new taxes and levies imposed on citizens and businesses,” it said.

NPSA added: “Recognising the fact that citizens should fund their government through humane taxation, the NPSA would not ordinarily have issues with tax payments.

“However, given the totality of the governance environment, especially noting the self-serving orientation of most Nigerian politicians, we hold the view that the federal government is putting the cart before the horse; doing the last thing first in the circumstances.”

The association insisted that the ideal thing would have been cutting the obscene expenditure of government and rejuvenating the economy before any contemplation of an expansive tax net where all will be affected.

“How can any Nigerian avoid the petroleum tax? Also, the taxes imposed on withdrawals will ultimately be passed on to ordinary Nigerians. These are issues being downplayed by apostles of the taxes,” NPSA asked.

Read also: Nigeria’s tax revolution will fail unless it confronts power

It warned that the commencement of the taxes could lead to a cascading effect, where taxpayers would be subjected to multiple tax burdens, “notwithstanding the contrary argument advanced by promoters of the new tax law, stifling economic growth and discouraging investment.

“Every tax withdraws money from people’s pockets, and with the new law, no one can escape its net. Moreover, in an environment lacking adequate accountability mechanisms, this could exacerbate the problem.

“While the debate over the exemption of vulnerable groups is an academic exercise, the reality is that all Nigerians will be affected by the tax regime,” it said.

NPSA observed that the discrepancies between the assented and gazetted versions of the tax law have raised concerns about the transparency and accountability of the legislative process.

It added that lack of clarity could lead to confusion, disputes, and litigation, further undermining the effectiveness of the tax system.

It, therefore, urged the government to reconsider the tax reform and engage in a more inclusive, transparent, and participatory process.

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