New laws capable of transforming Nigeria’s tax landscape, says Uwaleke

A financial expert, Prof. Uche Uwaleke, says the newly amended tax laws are capable of transforming the country’s tax landscape.

Uwaleke, the Director, Institute of Capital Market Studies at the Nasarawa State University, Keffi, said this in an interview with the News Agency of Nigeria (NAN) on Friday in Abuja.

NAN reports that President BolaTinubu, on Thursday, signed the four new tax bills recently passed by the National Assembly into law.

Tinubu described the new laws as pivotal to the success of the administration’s reforms and the country’s prosperity.

The bills are the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill; and the Joint Revenue Board (Establishment) Bill.

At the signing, Tinubu said that the occasion presented a new lease of life to every Nigerian as well as the future generation.

“What we did is the way forward for our country’s prosperity. Leadership must help people take off, lead the way, and navigate every turn and twist.

“We must help them reach their destination. That is what we are doing.

“We are in transit; we have changed the roads, we have changed some of the misgivings, we have opened the doors to a new economy, business opportunities,” he said.

Uwaleke, described the development as bold and commendable, and capable of positively transforming the country’s tax landscape.

He said that provisions contained in the Nigerian Tax Act would eliminate multiple taxes that have proved to be a huge burden on businesses.

He said that they would also serve as a powerful tool for promoting jobs, redistributing income and growing the economy.

“With low-income earners now exempted from tax, and the tax threshold for small businesses now increased from N25 million to N50 million, the new tax regime is more progressive and fairer.

“It is unlike what currently obtains where businesses that record loses are still expected tp pay 0.5 per cent of their turnover as tax.

“I see the new tax laws improving Nigeria’s ease of doing business paving way for more investments,” he said.

He said that the Nigeria Revenue Service (Establishment) Act promised to plug leakages inherent in the collection of taxes by multiple agencies.

According to him, what remains to be seen is how well all these will be implemented.

“In this regard, a phased implementation approach is recommended.

“The establishment of the Nigerian Revenue Service demands investments in training and tax infrastructure to build institutional capacity.

“It also requires strengthening internal controls, ethics, and audit systems within the revenue service to cope with the expanded mandate.

“Also, public sensitisation and awareness of the tax reforms, including the roles of the tax appeal tribunal and the office of the tax ombudsman, are crucial to boost confidence in our tax system,” he said.

NAN