From Priscilla Ediare, Ado-Ekiti
A member of the House of Representatives, Hon. Kolawole Akinlayo, has said the ongoing tax reform bill is aimed at centralising the distribution of Value Added Tax (VAT) across the board.
The federal lawmaker, who said President Bola Tinubu’s tax reform bill is part of his administration’s commitment to promote a more efficient and equitable tax system in the country, noted that it will help to address concerns around VAT and ensure equity and fairness in its distribution across the federation.
Akinlayo, representing Ekiti North Federal Constituency II (Ido/Osi, Ilejemeje, and Moba Local Governments) at the Green Chamber, made the remarks when he was responding to questions from newsmen on the inputs of key stakeholders from the nation’s economic and financial sectors on the public hearing on the tax reform bills held by the House of Representatives, during an empowerment programme he organised for the people of his constituency in Ikosu-Ekiti, Moba Local Government Area, at the weekend.
Akinlayo said, “The House of Representatives set up a 44-member committee to take on the public hearing and I am a member from Ekiti State. I am a statutory member of the Finance Committee, so that gave me leverage to be in that Committee.
“So, when people came with their memoranda and recommendations we looked at it vis-a-vis what is on ground in the bill already. There are some areas we will amend where people talked about Value Added Tax (VAT).
“VAT is a consuming tax. It is what you consume that you pay taxes on, but some people feel some areas consume more than others. For example, the calls we make in Kano State, they file it in Lagos and Lagos takes the benefits, but now with this new tax bill before us whichever state you make calls, that state will be the beneficiary of that VAT. If I make calls here in Ikosu-Ekiti, Ekiti State will be the beneficiary of that VAT that is what the President has done.
“It is just to centralise the distribution of VAT across-the-board and to also tax the rich to pay for the poor. Also, any businesses below N50 million they are not going to pay tax and for those people earning certain amount they are no longer going to pay tax, those people from level eight and below. That is going to be like a tax holiday.”
On whether he is perturbed by the political schemings ahead of the 2026 governorship election in Ekiti State and the 2027 presidential election in the country, Akinlayo said, “I am not perturbed because we know we are working. What people don’t really understand is that the government we inherited was a decaying government. For Nigeria not to collapse that was the reason the President removed subsidy on fuel. And for Nigeria not to collapse that was also why the President floated the exchange rate, because if they don’t do that, you will allow the Naira to determine its value. Before, we were using Naira to back Naira, it is not done anywhere.
“As an Economist, nobody will do that, but the President said it is high time we faced the reality, and we take the bull by the horns and that is what the President is doing and the economy is gradually picking up and the prices of goods and services are reducing. Yesterday, I bought a bag of rice in the market at N72,000, last year December, I bought it N92,000. You can see the N20,000 price reduction. So, things will get better by God’s grace and we know this year will be a better one for Nigeria.”
At the massive empowerment programme, Akinlayo, who said the initiative was one of his many achievements, noted that the gesture was a way of supporting his constituents, giving back to society, and complementing the efforts of the State Governor, Biodun Oyebanji, at reducing poverty among the people of the state.
Items distributed include motorcycles, generating sets, hair dryers, roofing sheets, knapsack spraying machines, sewing machines, grinding machines, multimillion-naira cash gifts to widows, traditional chiefs, among others.
“I am giving back to a society that has done so much for me in the past. And this is just the beginning, we are going to do more for them.
“Things are hard in the society, the little we are doing is a way of bringing relief to them and I want them to make good use of these materials given to them for their own benefit and for the upliftment of their family.
“We distributed sewing machines to tailors, we gave hair dryers to hairdressers, we gave grinding machines to petty traders, motorcycles were given to commercial motorcyclists (Okada riders), knapsack spraying machines were given to farmers and so many other items were distributed.
“We selected 320 elderly widows from across my constituency and gave them cash of N50,000 each to start something and we also gave them Ankara and Guinea Brocade to clothe them.
“We are also giving out bursaries to students of higher institutions in my constituency regardless of their numbers, to support their education and also relieve their parents of school burden.
“We have told the beneficiaries not to sell the items given to them as the initiative is to boost their economic status and reduce poverty among other benefits.”
In his remarks, Governor Oyebanji showered encomiums on Akinlayo for his generosity and sense of patronage, saying he has demonstrated commitment to human capital development as a pillar of his administration with the quantum of items distributed to his constituents.
Governor Oyebanji also noted that the strong partnership he established with nine members of the National Assembly from the state is yielding the right dividends that are turning around the lives of the citizens.
The Governor, represented by his Deputy, Chief (Mrs) Monisade Afuye, applauded the federal lawmakers for their loyalty to the electorate, and for establishing a synergy that is upscaling dividends in terms of projects and human capital development.
“You could attest to the fact that Governor Oyebanji has established a very strong and reliable partnership with the nine members of the National Assembly from our dear state and this accounted for the high level of federal presence that we are witnessing in Ekiti today.
“Through this partnership, Ekiti has experienced an increase in road infrastructures, establishment of University in Ekiti State, conversion of Specialist Hospital to a Federal Medical Centre and building of school hostels for medical students of the Ekiti State University.
“I plead with the beneficiaries, please, don’t sell off these materials. Try and make good use of them. There is nothing to profit when you sell them. But if you use them for the purpose it is meant for, then, you will enjoy the gains better.”