President Tinubu has just assented four new tax reform bills into law.
You might have heard the official spin: streamlined taxes, ease of doing business, more revenue to develop.
But what does it mean to Nigeria beyond the big grammar and Abuja celebrations?
This is the question that every Nigerian ought to have been asking: How does it impact me?
Here’s a Breakdown
Nigeria Tax Bill (Ease of Doing Business) is one of the bills which will ease the number of taxes that businesses are subjected to.
You know the drill, whether you have a shop, a salon, a logistics startup, or you just hustle to make a living.
Several tax authorities are demanding payments.
Different names. No clarity.
This new law will put an end to that. Good idea.
However, will it be practical?
The Nigeria Revenue Service Bill abolishes the Federal Inland Revenue Service (FIRS) and introduces a more independent, effective and transparent organisation.
It is also extended to cover non-tax revenue. Sounds smart.
But will it work without becoming the next bloated, federal piggy bank?
Then there is the Joint Revenue Board Bill, which is aimed at ensuring that the federal, state and local governments cease fighting and begin to cooperate on tax matters.
Will Lagos and Abuja ever settle the control of VAT? Or will this only make a new boardroom with no bite?
Lastly, the Tax Administration Bill establishes a standard in Nigeria.
No more guessing as to how to collect taxes, or so it says.
What you ought to know is this: uniform laws can only do their work when there is uniform discipline.
Does your local government abide by the rules?
Do the tax officials ever give back receipts?
So, how do these bills benefit Nigerians?
Theoretically, they would simplify the life of the small business owners, enhance the government revenue, and attract investors.
However, the truth is that they can only be successful when they are implemented, transparent and most importantly, when the government spends what it gets in a manner that enhances your life.
Until then, a new name of a tax does not equal a new experience.
