From Ndubuisi Orji, Abuja
The House of Representatives Committee on Youths in Parliament has said the tax reforms bills before the National Assembly would ease the tax burdens on young persons when passed into law.
The chairman of the committee, Ayodeji Alao-Akala, stated this yesterday, at a National Youth Dialogue session on the tax bills organised by the panel in Abuja.
Alao-Akala, who stated that a review of tax laws in the country has become imperative so as to address contemporary fiscal challenges, noted that youths, especially those engaged in micro, small and medium enterprises (MSMEs), are among the most affected by tax policies.
He explained that the proposed tax reforms were aimed at ensuring fairer policies that support entrepreneurship and economic independence. The lawmaker explained that it would be detrimental to delay the reform of tax administration in the country.
Some of the youth groups that participated at the dialogue session, lauded the tax bills, saying if passed, they would impact positively on the economy of the country.
One of the groups, the Alumni Association of the Legislative Mentorship Initiative, which was represented by Abubakar Tijani, listed the benefits to include a reduction in company income tax, support for small businesses, personal income tax relief and VAT exemptions on essential goods and services, among others.
He said: “The bill proposes a gradual increase in the VAT rate, starting from the current 7.5 percent to 10 percent in 2025, 12.5 percent in 2026, and 15 percent by 2030. While this measure is intended to boost the government’s revenue, it could have adverse effects on consumers.
“An increase in VAT often leads to higher prices for goods and services, which could erode purchasing power and exacerbate inflationary pressures. For the youth who are already grappling with high unemployment rates, this could further strain their financial circumstances. It is essential to consider the broader implications of this policy on the cost of living and economic stability.”