₦airaland Forum

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has said it is possible for the current Value Added Tax structure to be kept as it is given the controversies it had stirred.

Oyedele said this on Sunday when he appeared on a live television programme on Arise TV to discuss the tax reforms proposed by President Bola Tinubu.

In October 2024, Tinubu introduced four Tax Reform Bills to the National Assembly to overhaul Nigeria’s tax system. The Bills – the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill – were to consolidate existing tax laws, streamline tax administration, and enhance revenue generation.

The proposed legislation has faced stiff resistance from various players in the country, as people argue that it would favour one section of Nigeria at the expense of others. Proposed reforms to the Value Added Tax were one of the main grief points.

Speaking on Sunday, Oyedele said what his committee proposed regarding Value Added Tax would benefit every part of the country.

He, however, noted that if the preference was for the current state, then his team was willing to oblige.

“There were two comments that Mr President made. His first point is that we have to do tax reforms. We cannot continue with the laws of the colonial era and hope that Nigeria will become a developed country. This tax system is holding us back. Then after a few other questions, someone asked a question again about whether he was willing to move and make a compromise, and he said, ‘Yes’. So his point is that we have to carry out tax reform.

“That is what is non-negotiable, otherwise, we will be missing out on a significant opportunity to move Nigeria forward. But in terms of the details of those bills, everything is up for grabs. I can tell you, as we speak today, if they want us to keep the current VAT formula, we’ll keep it 100 per cent. So, the fact that people keep using the problem we are trying to solve against us, is what I need to understand.

“We are saying today that Lagos State is getting the benefit for calls made in Kano, Kwara, in Ekiti. We say, let’s change that. And then you come out and say they want to take what we are doing in Kano to Lagos,” he said.

The tax reforms committee boss tracing the history of the VAT in Nigeria said, “It seems to me that the more we explain it, the more people try not to understand because a lot of people don’t even understand the current position of the law.

“Let me quickly explain what the problem is, the value-added tax was introduced in 1993 by the military. Implementation started in 1994 and that was to replace the sales tax that was being done by states.”

Oyedele stated that in 1999 when Nigeria got into the Fourth Republic, the country needed a constitution.

“The people that put the Constitution together pretty much replicated 1979’s. In 1979 there wasn’t VAT. So in 1999 when they introduced the constitution, VAT was missing, but the government continued to collect VAT. Some states like Rivers State and Lagos State are in court saying that VAT should be collected by the state because they feel that they are not getting enough for the contribution they are making into the VAT pot, and therefore if they collect it as a state tax, they will be better off.

“That is the equivalent of 100 per cent derivation. For us, as we’re working on these tax reforms. We said if we get states to start collecting VAT in Nigeria, it will be chaotic for business because we know for a fact that states in Nigeria will not respect input-output.

“So we said, how can we make everybody at least comfortable and address inequity? What did we identify? As of today, when companies remit their VAT, they tend to remit from their head office because that’s where they have the finance department. So MTN, BUA, Dangote, Airtel, all the banks, most of them are headquartered in Lagos. Some of the oil companies are headquartered in Rivers State,” he stated.

Oyedele affirmed that the tax reforms became important seeing that there was no VAT in the Nigerian constitution.

He went on to warn that if the tax reform bills were withdrawn from the National Assembly, it would be hard to represent them as he feared that consultations would be frustrated.

Oluwakemi Abimbola, Punch Newspaper
https://punchng.com/fg-can-retain-vat-as-it-is-oyedele/

This man should be extremely careful spiritually and physically. They may try to poison him or set him up with waist bead/leg chain wearing women. They may even attack him spiritually by sitting on prayer mat while reciting satanic verses on his pictures.

Any policy coming from the Tinubu administration is wicked and evil

Roger3D:
Any policy coming from the Tinubu administration is wicked and evil

Parasites. They cannot generate revenue but they know how to spend money. Monkey dey work, baboon dey chop.

Core Northerners don't trust anyone who is not a core Northerner, especially Yorubas, Christian Middle belters and Igbos. Yet, they don't want the country to disintegrate and be independent.

I blame the so called educated southerners who still believes that Nigeria can be better with these Aboki people.

Tinubu na thief

The North does not want reform.

The south that generates the resources wants reform.

mrrandomguy:
Oluwakemi Abimbola, Punch Newspaper
https://punchng.com/fg-can-retain-vat-as-it-is-oyedele/

Oyedele is trying to make tax reforms work for everyone.


But here’s the kicker: if these reforms get dropped in the National Assembly, reintroducing them will be a massive uphill battle. And honestly, the whole system needs this reform, especially with big players like MTN and Dangote paying VAT in their headquarter states, leaving others shortchanged.











There is one frustrated witch on the loose, and having devoured all the children of her coven members, she’s now seeking Nairalanders to unleash her frustrations upon.





😂😂😂😂

mrrandomguy:
Oluwakemi Abimbola, Punch Newspaper
https://punchng.com/fg-can-retain-vat-as-it-is-oyedele/

This VAT issue is quite an interesting one, and it highlights some of the complexities in Nigeria's tax system






























Nairaland witch 🧙‍♂️ oya food don ready 🤣🤣🤣

Get rid of the parasites

Confusion is an understatement of what hit them from Tinubu. The Idiots thought Tinubu was coming to establish SHARIA LAW for their exclusive benefits as Muslims Muslims ticket loving lots

North and East are the problems of Nigeria.

One will not get educated, but choose to be a parasite.

The other is always feeling cheated and engaging in chest-beating.

mrrandomguy:
Oluwakemi Abimbola, Punch Newspaper
https://punchng.com/fg-can-retain-vat-as-it-is-oyedele/

Confused or Corruption no gree dem settle.. okan won o ni baale

Iweakbro:
North and east are the problems of Nigeria.

I from northcentral.

9ja proble Na North.

I mean deep north!

I don't agree with this administration almost every time because they are confused, corrupt and waste resources but i do agree with this tax reform. It must happen.

we need to reform our Tax regime. it will even help the north more and they will see need to do more in terms of security so that investments will stay

👍

The Tax Reform Nills wil be passed into law and the country will he better off for it.

All oppositions will eventually fade away.

mrrandomguy:
Parasites.
Core Northerners don't trust anyone who is not a core Northerner, especially Yoruba's, Christian Middle belters and Igbos . Yet, they don't want the country to disintegrate and be independent.

I blame the so called educated southerners who still believes that Nigeria can be better with this Aboki people.

The bolded is just is a big lie. IT IS ALL ABOUT INTEREST. It is about what 'some' people stand to gain.


We have seen how the same Tinubu who said he doesn't believe in one Nigeria becoming the president of the same ONE Nigeria. If by crook and crude he was denied being the legitimate winner of the last election. I bet, Tinubu would have become the number one supporter of Sunday Igboho.

Same applies to Igbos let's not even talk about Ojukwu's selfish ambition of a Biafra that cost the lives of Igbos who are still blind till today, same Ojukwu contested to become president of the same Nigeria he claimed not to believe in. Mind you his wife Bianca is currently a minister in Tinubu's administration which she is so proud of being a part of the Nigerian Government and not being anti-Nigeria, an advocate of Biafra which her husband led his people to the slaughter for his own selfish interest.

Or should we talk about the pro Biafrans who suddenly became pro Nigerians, ? All because a fellow Igbo man by the name Peter Obi who was contesting to become president of same Nigeria they call a Zoo?

The same core North, Kano State recently had posters of Good luck Jonathan flying around. Of course he is not a Muslim and neither from the North.

They are not acting confused, the illiterates are confused. Parasites will starve to death.

Dem never know. These Parasites from the desert do not know whom they are playing the Political Chess with. They are playing with the god of Politics.

Even if no human nor spirit supports the Bills, we will pass them. As a Muslim, it is Haram to use VAT from Beer to sponsor Almajaris to Mecca for pilgrimage and also marry multiple wives for them. Let Northerners go and get Islamic approved money to marry many wives and go to Mecca

The current VAT system is cheating states that go all out to accommodate investors to generate revenues while others only wait on government allocations....

It should be changed to the proposed VAT system where the value is forwarded to their headquarters...This way, the head financial officer will analyse what each state is generating.

The North harbours intelligent elites amongst them but also act very unintelligent about national issues.

mrrandomguy:
Parasites.
Core Northerners don't trust anyone who is not a core Northerner, especially Yoruba's, Christian Middle belters and Igbos . Yet, they don't want the country to disintegrate and be independent.

I blame the so called educated southerners who still believes that Nigeria can be better with this Aboki people.

This a typical food market in one of the rural villages of "parasites" up north, where food is loaded in trucks and trailers for delivery to producers (consumers) elsewhere.

mrrandomguy:
Parasites.
Core Northerners don't trust anyone who is not a core Northerner, especially Yoruba's, Christian Middle belters and Igbos . Yet, they don't want the country to disintegrate and be independent.

I blame the so called educated southerners who still believes that Nigeria can be better with this Aboki people.

Well said 👏 bro. That's the tragedy of educated southerners who still believe that Nigeria can be better with Shari'a drunk northern states.

If we miss out on the Tax reforms Bills, Bye Bye to Nigeria.

To be sincere, nobody trusts Tinubu again and that's why the tax reform will never see the light of the day. All his activities are shrouded in mystery. Let him keep his tax reform agenda. I saw the lavish end of the year party organised by FIRS recently. I was taken aback where the money to organised such party came from despite Tinubu's stand on pleading with masses to Continue to bear with his government. If you think Tinubu's economy reform is to make life better for the masses, you will wait tire.

SMH

How much of the money made are they sending to the Federal Government account? These are private businesses and you can't compare these to natural resources from the South.

The food production is even from the middle belt and not from the north.

Nadingo:
A typical food market in one of the villages of "parasites" up north, where food is loaded in trucks and trailers for delivery to producers (consumers) elsewhere.

Buhari4dullard:
The North does not want reform.

The south that generates the resources wants reform.

Exactly.

The reforms must be carried out or they join their sahelian brethren to continue with their misrule and oppression.

Tinubu should not back down on these reforms.

Roger3D:
Any policy coming from the Tinubu administration is wicked and evil

Cry well well

It is clear as crystal light that they are opposing it because it's against their religion. This is according to one of their governor ooo.

TooMuchStuff:
Confusion is an understanding of what hit them from Tinubu. The Idiots thought Tinubu was coming to establish SHARIA LAW for their exclusive benefits as Muslims Muslims ticket loving lots

LoL 😆

mrrandomguy:
Oluwakemi Abimbola, Punch Newspaper
https://punchng.com/fg-can-retain-vat-as-it-is-oyedele/

I think the interview should have included an expert from the opponents of the bill to ask Mr Ayodele some critical questions bordering on their areas of concern or the interview organizers should have gotten list of questions from the opponents to ask Mr Ayodele so that the public can be properly informed about the tax reform issues,I have a very strong feeling that there are hidden but sticking points in this tax reform discourse that if not openly sincerely n adequately address might be the source of friction in the future.