LunagisthubThe Pitfalls of Nigeria’s New Tax Law: A Call for Suspension
The Labour Party’s 2023 presidential candidate, Peter Obi, has urged the Federal Government to suspend the implementation of the newly gazetted tax laws, citing serious errors, inconsistencies, and gaps that could have far-reaching consequences for businesses and taxpayers. According to Obi, a report by KPMG Nigeria highlighted 31 critical problem areas in the tax laws, including drafting errors, policy contradictions, and administrative gaps .
The report noted that the issues were so complex that private meetings between the National Revenue Service and KPMG were required to acknowledge the serious problems. Obi questioned the logic of a tax system that even experts struggle to understand, asking, “What hope does the average Nigerian have of comprehending the obligations being imposed on them?” .
Obi emphasized that taxation represents a social contract between the government and citizens, which requires transparency, accountability, and public consultation. However, he noted that the government failed to engage in public consultations before finalizing the tax laws, leaving ordinary citizens in the dark about the regulations and benefits of the taxes they’re expected to pay .
Given the complexities and inconsistencies in the tax laws, Obi urged the government to suspend their implementation until a more consultative approach is adopted. He stressed that taxation should be a social contract built on trust, clarity, and tangible public benefits .
The outcome of this situation will be closely watched by businesses, taxpayers, and the general public. Will the government heed Obi’s call and suspend the implementation of the new tax laws?.
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