•••Said “I Have No Regret Removing Fuel Subsidy”
In his first presidential media chat aired by NTA, President Tinubu explained his swift decision to remove the fuel subsidy upon assuming office on May 29, 2023. He emphasized the need to preserve Nigeria’s future and that of future generations.
Tinubu defended his decision noting that the country cannot afford expenditures without corresponding revenue, and highlighted the importance of fiscal management in all government programs. He also pointed out the need to prevent neighboring countries from benefiting from Nigeria’s fuel resources.
Tinubu reiterated that he has no regrets about his decision to remove the fuel subsidy.
However, President Tinubu remains resolute in his stance on tax reforms, emphasizing the need to modernize the country’s tax system and eliminate outdated colonial-era practices. He reaffirmed that the tax reforms are necessary for the country’s economic growth and sustainability.
Despite calls for more consultations on the tax reform bills, President Tinubu emphasized that the reforms are essential and will not be delayed. He also expressed willingness to make concessions and negotiate on certain aspects of the proposed legislation, including the VAT-sharing model.
Speaking at the presidential media chat on Monday, Tinubu said the tax reforms were initiated to “eliminate colonial-based assumptions” in the country’s tax environment.
The president said the country cannot continue to use old methods in today’s economy.
Tinubu said those calling for more consultations on the tax reform bills will still do so even if he delays the presentation of the proposed legislation.
“Tax reform is here to stay. In today’s economy, we cannot continue to do what we were doing in the past. We can’t retool with old and broken folks,” he said.
“The essence of tax reform is to eliminate colonial-based assumptions in our tax environment.
“Every tax situation without outcry is not a tax. You can’t satisfy uniformly the largest community of tax evaders. Look at this tax reform; it is pro-poor. The vulnerable are not to pay taxes
“The hallmark of a good leader is the ability to do what you have to do at the time it ought to be done. That is my philosophy.”
Asked if he was ready to make some concessions on the proposed value-added tax (VAT) sharing model, the president said he does not mind cutting edges.
“Tax matters are subject of debates, reviews, and negotiations until you reach a consensus. I don’t mind cutting edges. I will,” the president said.
On October 3, Tinubu asked the national assembly to consider and pass the bills.
The legislations comprise the Nigeria tax bill, Nigeria tax administration bill, Nigeria Revenue Service establishment bill, and the Joint Revenue Board establishment bill.
One of the legislations that proposed a new VAT-sharing formula for the federation has been vehemently rejected, especially by northern stakeholders.
