By Gift ChapiOdekina

Abuja-Youth groups yesterday pledged their support for the tax reform bills currently being reviewed by the National Assembly.

Recall that the Senate and House of Representatives recently concluded a public hearing on the bills, forwarded to them by President Bola Tinubu in October 2024, expressing their commitment to assessing the proposed laws in the national interest.

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

Speaking at the National Youth Dialogue on Tax Reform Bills at the National Assembly, Abuja, the Alumni Association of the Legislative Mentorship Initiative praised the government’s efforts, stating that the reforms could significantly improve the country’s economic outlook, if implemented.

A representative of the association, Mr Abubakar Tijani, highlighted that the legislation was more than just fiscal policy, as it represents a roadmap to economic progress, with a direct impact on the country’s youths who embodied Nigeria’s present and future.

However, Tijani also emphasized the need for careful consideration of the bills’ uncertainties to ensure they benefitted all Nigerians.

He pointed to several positives in the proposals, such as reduction in Company Income Tax; support for  small businesses; provision of personal income tax relief, and exemption from Value Added Tax, VAT, on essential goods and services.

He explained that the Company Income Tax, currently put at 30 percent, would gradually reduce to 25 percent by 2026, promoting business growth, increasing employment opportunities and attracting investment. Tijani noted that small businesses with an annual turnover of ¦ 50 million or less would be exempted from income tax, encouraging entrepreneurship, as well as aiding workers to earn ¦ 800,000 or less annually through exemption from personal income tax, in addition to relief for low-income earners, thus boosting consumer spending.

Tijani further highlighted areas of concern, including the proposed VAT increases—from the current 7.5 percent to 15 percent by 2030—which could lead to higher prices and strain consumers, particularly young people facing financial challenges.

He also expressed concern about the plan to cease funding for key agencies such as the Tertiary Education Trust Fund, TETFUND; National Agency for Science and Engineering Infrastructure, NASENI, and National Information Technology Development Agency, NITDA, by 2030.

‘’These agencies are critical for education, technology and innovation, sectors essential for youth development and national progress,” he said.

Tijani warned that imposing taxes on businesses in Free Trade Zones could discourage investment and reduce job opportunities.

In his remarks, speaker of the House of Representatives, Tajudeen Abbas, who was represented by Leke Abejide (ADC, Kogi), assured the youth groups that their input would be considered in the legislative review of the bills.

He described the proposed laws as catalysts for economic growth and national development.

Similarly, Ayodeji Alao-Akala, Chairman of the House Committee on Youths in Parliament, underscored the need for updating the country’s tax laws to address current fiscal challenges.

He said:  “This proposed legislation is not merely a collection of fiscal policies; it is a blueprint that will shape the economic trajectory of our nation and more importantly, directly impact the lives of our youth, who largely represent the present and future of Nigeria.”

He called for a balanced exchange of views, adding that as good as the bills were, there were areas of uncertainty that needed some clarity for the benefit of Nigerians.