FG’s new tax law’ll hurt many Nigerians – NPSA

• Urges FG to reconsider implementation

From Femi Folaranmi, Yenagoa

The Nigerian Political Science Association (NPSA) has faulted the Federal Government’s new Tax Law, declaring that its implementation would impact many Nigerians negatively.

NPSA, in a statement signed on its behalf by its national President, Prof Hassan Saliu, noted that considering the totality of the governance environment, especially the self-serving orientation of most Nigerian politicians, the federal government is putting the cart before the horse.

According to the group, the ideal approach would have been to cut the government’s obscene expenditure and rejuvenate the economy before considering an expansive tax net that would affect all.

“How can any Nigerian avoid the petroleum tax? Also, the taxes imposed on withdrawals will ultimately be passed on to ordinary Nigerians. These are issues being downplayed by apostles of the taxes,’’ the group added.

NPSA stated that the new tax law has created more avenues for a lack of accountability in governance in Nigeria

“The idea of warehousing the collections in organisations that are already juggling a lot of responsibilities, without regard for the dangers involved, lends credence to public concerns about the aftermath of the collections.’’

NPSA further highlighted some aspects of concern in the new tax law, including issues of multiple taxation, which it insisted remain a longstanding challenge in Nigeria’s tax system.  The statement read in part: “The commencement of the taxes can lead to a cascading effect, where taxpayers are subjected to multiple tax burdens, notwithstanding the contrary argument advanced by promoters of the new tax law, stifling economic growth and discouraging investment. Every tax withdraws money from people’s pockets, and with the new law, no one can escape its net. Moreover, in an environment lacking adequate accountability mechanisms, this could exacerbate the problem.