Oyedele Defends Tax Reforms, Emphasises Economic Overhaul Over Political Motives

Following the recent outburst regarding the tax reform bill, Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has stated that the initiative is not politically motivated. Rather, it aims to fix the national economy.

Oyedele made this clear on Monday during Channels Television’s town hall meeting on tax reforms.

According to him, the bills were not designed to generate more revenue for specific parts of the country. Instead, they aim to alleviate hardship by completely exempting low-income earners from tax, specifically those who earn about N83,000 per month or N1 million annually.

He emphasized that the tax bills will “fix the economy in a way that allows for shared prosperity.”

Meanwhile, since the announcement of the tax reforms, there have been complaints from political leaders, stakeholders, and citizens, who have cited ambiguities and concerns of marginalization.

Responding to this criticism, Oyedele clarified, stating that “the fiscal and tax system is like the knee on the neck of our economic prosperity as a people.”

He added that “the primary objective of the reforms is not to generate more revenue.”

Major criticism came from former Vice President Atiku Abubakar, Governor of Borno, Babagana Zulum, and former Governor of Sokoto State, Aminu Tambuwal.

The critics reiterated that, due to the population rate and the underdeveloped economy of the northern states, this policy would deepen hardship and further damage the region.

Conversely, the federal government asserts that the bills are aimed at overhauling the nation’s tax system, preventing leakages, and ensuring true fiscal federalism.

It was noted that the federal government seeks to consolidate existing tax laws, establish clearer frameworks for tax administration, and create bodies like the Tax Appeal Tribunal and the Office of the Tax Ombudsman to ensure transparency, efficiency, and fairness in the tax system.

Oyedele added, “We have tax laws that are very old and no longer fit for modern needs, including those inherited from our colonial masters.”

“So, we decided to use the opportunity of this reform to rewrite those laws, ensuring they are made by Nigerians for Nigeria, to drive our prosperity moving forward. And that’s what led to the four bills currently before the National Assembly, which have been properly summarised,” he stated.