The President of the Senate, Godswill Akpabio, on Monday taunted Nigerians for being fast to demand higher infrastructure however displaying nearly unanimous resistance when the subject of taxation arises.
Akpabio made the statement at a two-day public listening to on the Tax Reform Payments, stating that many Nigerians need the advantages of a practical system however are unwilling to contribute by taxes.
This paradox was a key theme in the course of the occasion, the place the Senate President made an impassioned plea for a extra accountable method to taxation.
He famous that whereas the federal government is dedicated to enhancing the lives of Nigerians, the fact is that public companies require funding, and taxes are the first supply of that funding.
“Tax evasion will not be new in Nigeria. From merchants in bustling markets to high-earning professionals, many go to nice lengths to keep away from paying taxes,” he mentioned.
“The casual economic system, which constitutes a good portion of Nigeria’s GDP, operates largely exterior the tax internet.
“Even within the formal sector, tax compliance is low, with many companies underreporting their earnings to reduce their tax obligations.”
Akpabio acknowledged the frustration many Nigerians really feel about a number of and inconsistent tax insurance policies.
He cited cases the place companies are taxed at totally different ranges—federal, state, and native governments—generally with little readability on how these taxes are spent.
“If we aren’t cautious,” he warned, “our system could discourage funding and financial exercise.”
Regardless of this reluctance, Nigerians have excessive expectations from the federal government.
They demand higher roads to ease transportation and cut back accidents, 24-hour electrical energy to help companies and households, practical hospitals to cut back medical tourism and save lives, and high quality schooling to organize the following technology.
He added, “All of those require funding, and taxation is essentially the most sustainable approach to supply it.”
Akpabio, due to this fact, urged Nigerians to see taxation not as a punishment however as a civic responsibility that fuels nationwide improvement.
“There isn’t any nation on the planet that develops with out an efficient tax system,” he emphasised.
In keeping with him, the Tax Reform Payments underneath dialogue goal to create a fairer, extra environment friendly tax framework.
The payments, he defined, suggest the harmonization of tax administration to cut back duplication and make compliance simpler, a discount in the price of tax assortment to make sure that a larger share of income is spent on improvement relatively than forms, and the introduction of digital tax methods to enhance transparency and accountability.
A serious concern raised in the course of the listening to was the honest distribution of tax income.
Akpabio cited an instance the place breweries working in Ogun State pay most of their taxes in Lagos as a result of their headquarters are there. In the meantime, Ogun, which bears the brunt of manufacturing actions, receives little tax income.
“This imbalance have to be addressed,” he insisted, calling for a tax system that advantages each the states the place financial exercise happens and the broader nation.
He reiterated that Nigerians should acknowledge that nationwide improvement is a shared duty, including: “Whereas the federal government should guarantee accountability and environment friendly use of public funds, residents should additionally play their half by paying their fair proportion of taxes.”
As the general public listening to continues, stakeholders, together with companies, tax professionals, and civil society organizations, are anticipated to supply enter to form a tax system that’s equitable, clear, and conducive to financial development.
However the elementary query stays: Can Nigerians demand good governance with out being keen to pay for it? The reply lies of their collective willingness to embrace taxation as a device for nationwide progress.
