By Ibrahim Hassan-Wuyo

The Association of Arewa Yoruba Youths (AAYY), has said that President Bola Tinubu’s tax reform bill represented a progressive and visionary step in reshaping Nigeria’s economic and social landscape, calling on Nigerians to lend support.

In a statement issued by its National President, Ambassador Lawal Hussein Taiye, the group said the association enthusiastically supported the reform, recognizing its potential to transform the lives of millions of Nigerians, particularly the marginalized and underserved.

According to the group, “as a Tax System for the people for decades, Nigeria’s tax system has been perceived as complex, inequitable and burdensome, especially for low-income earners and small businesses.”

” President Tinubu’s tax reform bill addresses these long-standing issues by exempting businesses with a turnover of less than N50 million from tax payments, the reform recognizes the vital role of small enterprises in Nigeria’s economy. Small businesses are the backbone of our communities, providing employment and fostering innovation. Eliminating profit taxes for over 90% of small businesses will reduce their financial burden, allowing them to grow and contribute more significantly to economic development.”

They added that the tax would be a  relief to low-Income earners as over 90% of workers in Nigeria’s public and private sectors would no longer pay income tax, adding that for those earning less than N1.7 million monthly or N9 million annually, income tax rates would  be significantly reduced, with some seeing their tax burdens halved, and the relief will ensure that hardworking Nigerians keep more of their earnings, alleviating poverty and enhancing their quality of life.

Hussein, who is also the National Coordinator of Tinubu Mukeso Group said, “Taxing the wealthy one is the hallmark of this reform which is its fairness.”

” By shifting the tax burden to wealthier individuals and exempting low-income earners, the bill embodies a progressive tax system. This approach not only promotes equity but also aligns with global best practices for economic justice.”

He noted that over 82% of goods consumed by low-income Nigerians would be VAT-free, making essential commodities more affordable, pointing  out that the measure directly benefits families struggling with the rising cost of living, ensuring that their basic needs are met without additional financial strain.

He noted that the bill’s reallocation of VAT revenue, where 90% will now go to states and local governments, is a revolutionary step in decentralizing resources, saying that there will shift empowers local authorities to address the unique needs of their communities, fostering grassroots development and reducing over-reliance on the federal government.

The association noted that tthe abolition of consumption taxes collected by states would streamline revenue collection and eliminate redundant tax burdens, believing that such measures demonstrate a commitment to simplifying governance while maximizing impact.

Hussein observed that currently , Nigerian businesses faced over 60 different taxes and levies, stifling their growth and discouraging investment, believing that the reform’s plan to consolidate tax collection under one agency and abolish nuisance taxes is a game-changer and will improve the ease of doing business, attract local and foreign investors, and revitalize the country’s industrial sector.

He said that President Tinubu’s tax reform bill would not just be about addressing present challenges but a visionary plan for long-term growth, saying that the gradual VAT increase from 10% in 2025 to 15% in 2030, with essential goods exempted, is a balanced strategy that ensures economic stability while protecting low-income earners.

“Additionally, the abolition of outdated tax laws, such as the Stamp Duty Act, signals the administration’s commitment to modernization and efficiency,” the group added.