President Bola Tinubu has reaffirmed his administration’s commitment to implementing tax reforms in Nigeria, stating that the reforms are irreversible.

This declaration underscores the government’s determination to push through with the proposed changes, despite opposition from various quarters.

President Tinubu in his maiden media chat held Monday in Lagos said the reforms were pro-poor and meant to widen the tax net

He said the reforms might not be embraced by everybody, but maintained that there was no going back on it.

“The tax reform is here to stay. The reform is pro-poor and it is to widen the tax net, so we can have more people paying.

“The hallmark of a good leader is the ability to do what you have to do at the time it ought to be done. Tax matters are subjects of debates and negotiations. I don’t mind cutting edges. I will.”

The Tax Reforms bill which is  currently before the National Assembly had been opposed by northern leaders who contended that if passed into law would negatively affect revenue accruing to northern states.

The proposed reforms include four key bills: the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill.

These reforms aim to address challenges such as multiplicity of taxes, fragmentation of revenue administration, and excessive tax burden on vulnerable citizens, including small businesses and low-income earners. The bills also seek to create a friendly and competitive business environment in Nigeria by addressing incessant taxes that stifle business growth.

Some of the key deliverables of the bills include:

Equity: A new VAT revenue sharing formula that allocates 60% of VAT to states where consumption occurs, promoting fairness and equity.

 Investment: Reduction of corporate tax rates from 30% to 25% over two years, making Nigeria more attractive to investors.

Protection for poor/vulnerable Nigerians: Exemption of low-income earners from tax, and removal of VAT on essential items like food, education, healthcare, housing, and transportation.

Also, the president maintained the reforms introduced by his administration were not intended to inflict pains on Nigerians, but were necessary for growth.

He said he had no regrets about removing the fuel subsidy, which had led to a huge rise in the pump prices of petroleum products and negatively impacted the costs of goods and services.