Tinubu working to reduce burden of multiple taxation- Group

The Tinubu Media Support Group (TMSG) says contrary to insinuations, the President Bola Tinubu-led administration is working to reduce the burden of multiple taxation on Nigerians.

The TMSG said this in a statement jointly signed by its Chairman, Mr Emeka Nwankpa and Secretary Mr Dapo Okubanjo on Monday in Abuja.

“We have noticed how in recent times, certain elements have been making conscious efforts to misinform Nigerians and create a wrong perception about the Tinubu administration in the public space.

“These spurious and frivolous media propagandas are dubious and uncalled for, no new taxes are being contemplated or let alone, increasing existing ones.

“We make bold to say that there is no truth to those narratives, they are indeed lies told and spread to malign President Tinubu and his administration,” the group said.

It said the administration had been working on reducing the tax burden of 95 per cent of Nigerians involved in the informal sector.

The group said that the administration soon after assuming office, set up a Presidential Fiscal Policy and Tax Reforms Committee with a mandate to increase the country’s tax-to-GDP ratio from 10.86 per cent to 18 per cent in the next two to three years without introducing new taxes.

It added that within its first few months of operation, the committee headed by Mr. Taiwo Oyedele, a tested tax expert, revealed that Nigerians had been paying 60 official and 200 unofficial taxes.

This, it said, was across all levels of government, adding that the Federal Government was ready to reduce the taxes to ten.

“And while we agree that small businesses have, over the years, been struggling with multiple taxation from different government agencies at all levels.

“We also know that the presidential committee has recommended that those earning 25million dollars and less annually should be exempted from paying all forms of taxes, including, withholding, income and value added tax (VAT).

“This is aside from engaging with state governments with a view to suspending what is called nuisance taxes that do not add value to the coffers.

“The thinking, of the Tinubu administration here, is to stop the penchant by Local Government officials for extracting money through extortion from people struggling to make ends meet,” the group said.

It said if there was any doubt about Tinubu’s sincerity in shielding the masses from excessive tax burden, he would not had ordered the suspension of the newly introduced cyber security levy.

The group said the president would also not had ordered a review that may involve amending the Cybercrime Act which provided for 0.5 per cent levy on certain banking transactions.

It said it was shocking that some Nigerians had gone to the extent of distorting comments made by Tinubu at his 2019 colloquium on plans by the then President Muhammadu Buhari administration to increase VAT.

“While unscrupulous people, through subterfuge, have been recycling claims that he made a case for the reduction in the purchasing power of Nigerians.

“Many fact checking agencies including the Foundation for Investigative Journalism (FIJ) have debunked it but mischievous elements have continued to circulate it.

“We agree with fact checkers and make bold to say that Tinubu not only spoke against an increase in VAT, but also made a case for a broader tax net.

“To bring in more people rather than a general increase in taxation,” the group said.

It said that like the World Trade Organisation (WTO) Director-General Dr Ngozi Okonjo-Iweala rsuggested, Tinubu was keen on broadening the tax net to improve the country’s tax to GDP ratio.

The group urged mischief makers to put a stop to the long-standing distortion.