Tax Reform Bills: Islamic Groups to Meet Wednesday To Take Stand

Tax Reform Bills: Islamic Groups to Meet Wednesday To Take Stand 

Amalgamation of Islamic groups under umbrella of Islamic Forum for Unity of the Ummah have concluded arrangements to meet on  Wednesday  to discuss the controversial Tax Reform Bills introduced by President Bola Tinubu-led administration.

According to the Islamic Forum, sensitive government policy, such as the proposed tax reforms needs wider consultations with stakeholders, groups and the citizens before been passed into law. 

The President had, on September 3, transmitted four tax reform bills to the National Assembly for consideration.

But in a statement jointly signed by the Chairman, Mallam Adam Awwal Muhammad and Secretary Sheikh Akanbi Rashidi Bolaji, Islamic Forum for Unity of the Ummah expressed concerns over the rejection of the bills by northern governors and National Economic Council recommendation for withdrawal.

The statement further said ,"At the Meeting convened by Sheikh Mustapha Al-Arabi convener, members of Islamic groups are expected to discuss the content of bills with regards to interest and economic implications as well as benefits to Muslim communities  across the country and take a stand.

It also hinted that the decision to meet over the controversial tax reform bills stemmed from the concerns raised in some quarters over the new derivation-based model for VAT distribution and the contents of the bills, which the northern governors claimed did not align with the interests of the North and other subnational entities.

While noting that the bills have not been presented for a second reading where the principles of the bills will be debated, it stated, "We don't want to be Hoodwinked into accepting a tax reform the will affect our people and their economic wellbeing,thus our decision to meet and get informed knowledge about the reforms before taking a stand.

The Forum further  said:"We have read the recommendations of the Presidential Committee on Fiscal and Tax Reforms headed by Taiwo Oyedele, for the review of existing tax laws.

"From the document read ,we  observed  that the bills are the Nigeria Tax Bills are  expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.

" We noticed it proposes several key changes, that  include a gradual increase in Value Added Tax (VAT) from 7.5% to 15% by 2030 and an adjustment in Company Income Tax, which would set a rate of 27.5% for large companies, reducing to 25% by 2026.Additionally, the bill proposes a 4% development levy on companies to fund the Student Education Loan Fund, along with a 5% excise duty on sectors such as lottery, gaming, and telecommunications.

" We hope that the issues of transparency, particularly through provisions requiring price transparency and monitoring of publication costs are upheld" .