Obi Urges FG To Suspend Newly Gazetted Tax Laws
The former Presidential candidate of the Labour Party (LP), in the 2023 general election in the country and Anambra State Governor, Gregory Peter Obi has called on the Federal Government to suspend the implementation of the newly gazetted tax laws.
Obi cited numerous errors, inconsistencies and gaps that could affect businesses and taxpayers in the country, if allowed to commence.
Obi stated this in Abuja on Tuesday, in a statement, posted on his X, formerly Twitter account, referring to a report by KPMG Nigeria, which flagged potential issues, including taxation of shares, dividend treatment, non-resident obligations, and foreign exchange deductions.
He said: “The report highlighted 31 critical problem areas, from drafting errors to glaring policy contradictions and administrative gaps. The issues were so complex that it took private meetings between the National Revenue Service and KPMG for these serious issues to be acknowledged.
“If experts require closed-door discussions to navigate the complexities of our tax laws, what hope does the average Nigerian have of comprehending the obligations being imposed on them,” he queried.“Typically, months, if not years, are dedicated to consulting with businesses, workers, and civil society before tax drafts are presented for public discussion, with the ramifications clearly explained.
“Yet, in Nigeria, we have seen no such public consultations or discussions regarding the final tax laws, leaving ordinary citizens completely in the dark about both the regulations and the benefits of the taxes they’re expected to pay.”
Obi argued that taxation represents social contract between Government and citizens, stressing lack of public consultations.
He further criticised the Government’s approach, saying, “We have hastily pursued collection without securing a consensus and imposed enforcement without providing adequate explanations.
“Even after the removal of subsidies, Nigerians remain in limbo, waiting for tangible benefits or relief. Instead, they are grappling with skyrocketing food prices, exorbitant transport costs, dwindling purchasing power, and escalating poverty levacc.
“The new tax regime is riddled with inconsistencies, producing 31 alarming red flags from leading global accounting firm. This is not the hallmark of responsible governance. Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without evident public value, it amounts to robbery.
“Nigeria cannot afford to place further burdens on its already struggling citizens. What we need is a Government that listens, communicates effectively, and prioritises building national consensus. This is the only viable path to genuine reform, unity, growth, and shared prosperity,” Obi said.
However, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, said report by KPMG on Saturday, clarified the policy intent behind the tax laws.
“Most issues highlighted by the firm were misunderstanding of policy objectives or disagreements with deliberate reform choices, while some points raised by KPMG were useful, bulk of the report mischaracterised the objectives and structure of the new tax framework,” Oyedele added.
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