By Gift ChapiOdekina, Abuja  

Find below the positions of some of the key groups in the country among the 200 which sent 

memoranda to the National Assembly (NASS) on the three controversial tax bills put together by the Tinubu administration

NLC: No to VAT hike

 The Nigerian Labour Congress (NLC), representing workers across various sectors, raised concerns about the proposed Value Added Tax (VAT) increase. They argued that the VAT hike would disproportionately affect the poor, as it would increase the cost of basic goods and services. Instead, the NLC proposed that the government focus on improving the efficiency of tax collection and curbing wastage in public spending before considering such increases.

ACF: Pro-growth and Fiscal Stability

 The Arewa Consultative Forum (ACF) emphasized the need for the three bills to support national development through balanced taxation that does not stifle growth in the private sector.

In its memorandum, the ACF proposed that the bills prioritize pro-business tax incentives to attract investments in northern Nigeria, where economic development has lagged due to insecurity and infrastructure challenges.

The group also called for a reduction in the Value Added Tax (VAT) for essential commodities to ease the economic burden on lower-income Nigerians.

ASUU: Safeguarding Education Funding 

 The Academic Staff Union of Universities (ASUU), representing Nigeria’s academic community, highlighted the potential impact of tax reforms on educational funding.

In its submission, ASUU expressed concern that the tax reform bills could reduce federal allocations to the education sector.

The union recommended specific tax exemptions for institutions of higher learning, noting that universities rely heavily on government funding for infrastructure development and research.

ASUU also advocated for the reintroduction of a tax on luxury goods, which they believe would generate additional revenue without burdening ordinary Nigerians.

Afenifere: Regional Development and Equity 

 Afenifere, a pan-Yoruba socio-political organization, advocated for tax policies that address regional disparities.

In its memorandum, Afenifere stressed the need for a fair tax system that ensures the southwest region, known for its industrial and economic vibrancy, does not become overburdened.

The group urged the government to adopt a tax model that encourages regional autonomy in resource control, allowing states to collect certain taxes and use them to fund local development projects. Afenifere also called for a review of tax policies that disproportionately affect small and medium enterprises (SMEs), which it argued are critical to Nigeria’s economic growth.

Ohanaeze-Ndigbo: Fiscal Federalism and Empowerment 

 Ohanaeze-Ndigbo, representing the interests of the Igbo ethnic group, submitted a memorandum that echoed calls for greater fiscal federalism.

The group argued that the current tax regime over-centralizes revenue collection, leaving states with limited financial autonomy.

Ohanaeze proposed that states should have greater control over the taxes collected within their jurisdictions, allowing them to address local challenges more effectively.

The group also called for tax policies that empower entrepreneurs, particularly in the southeast, where business activity is a key driver of regional prosperity.

Manufacturers Association of the Country (MAC): Corporate Tax Must Crash

 Manufacturers Association of the Country (MAC) expressed concern over the proposed increase in corporate tax rates, arguing that it would adversely affect local manufacturing industries already grappling with rising production costs.

MAC called for a reduction in corporate taxes and emphasized the need for incentives that would spur growth in key sectors such as agriculture, technology, and energy.

Civil Society Coalition on Economic Justice (CSCEJ): High-Income Earners Must Bear More Tax Burden

Civil Society Coalition on Economic Justice (CSCEJ), a coalition of various civil society organizations, argued in favor of progressive taxation. They proposed that high-income earners and large corporations should bear more of the tax burden to reduce inequality. Their submission emphasized the importance of transparency in tax collection and the need for government accountability on tax expenditure.

Association of Tax Consultants (ATC): Simplify Tax Code

 Association of Tax Consultants (ATC) submitted a memorandum advocating for simplifying the tax code. They noted that the current tax system is overly complicated, which leads to loopholes and tax avoidance by some corporations and wealthy individuals. The ATC recommended that the government streamline tax laws to make compliance easier and reduce the administrative burden on businesses.

NACCIMA: Yes to More Business-Friendly Tax Regime

  The National Association of Chambers of Commerce and Industry (NACCIMA), which proposed a more business-friendly tax regime. Their memorandum highlighted the need for a predictable tax environment to attract foreign direct investment (FDI). They also emphasized the importance of reducing multiple taxation, which they believe hinders small and medium-sized enterprises (SMEs) from growing and contributing meaningfully to the economy.

SMEDAN: Concerned About Multiple Taxes

 The Small and Medium Enterprises Development Agency (SMEDA) voiced concerns about multiple taxes, particularly at the local government level. In their memorandum, SMEDA called for a unified tax policy that would eliminate redundant taxes imposed by various government agencies. They argued that SMEs are the backbone of the economy and should be supported through tax reliefs and better access to credit.

ICAN: Widen Tax Base

 The Institute of Chartered Accountants of Nigeria (ICAN) proposed measures to widen the tax base by incorporating the informal sector. Their submission suggested that the informal sector, which constitutes a significant portion of the economy, should be encouraged to formalize through incentives such as lower entry-level taxes and simplified registration processes.

CAN: Higher VAT Could 

Push More People into Poverty

Christian Association of Nigeria (CAN) raised concerns over the burden the proposed VAT increase could place on low-income earners. CAN emphasized that the majority of their congregants belong to economically disadvantaged groups, and a higher VAT on essential goods and services could push more people into poverty. In their memorandum, they called for exemptions on basic necessities such as food, medicine, and education services, arguing that the tax system should prioritize the welfare of the poor and marginalized.

SCIA: We Need Just, Equitable Tax System

 The Supreme Council for Islamic Affairs (SCIA) submitted a memorandum that focused on the need for a more just and equitable tax system, in line with Islamic principles of wealth distribution. SCIA stressed the importance of ‘Zakat’, the Islamic charitable tax that supports the poor, and urged the government to adopt measures that ensure wealthier individuals and corporations contribute more to societal development. They argued that the tax system should be designed to alleviate poverty, reduce income inequality, and ensure that no one is left behind in the economic development process. 

Catholic Bishops: Properly Manage Tax Revenues

 The Catholic Bishops Conference presented a memorandum urging the government to improve transparency in the allocation and use of tax revenues. They highlighted the moral obligation of the government to use taxes for the common good, particularly in areas such as education, healthcare, and social services. The conference emphasized that proper management of tax revenue is essential for maintaining public trust and ensuring that religious communities can support their members during times of economic hardship.

PFN: Exempt Deserving Groups from Paying Tax

The Pentecostal Fellowship of Nigeria (PFN) focused on the tax exemptions currently enjoyed by religious institutions. Their memorandum requested that these exemptions remain intact, emphasizing the important role religious organizations play in providing social services such as schools, hospitals, and charity programs. They argued that removing tax exemptions could hinder the ability of religious bodies to continue offering these critical services, especially in underserved communities.

FOMWAN: Concerned About Tax on Women, Children

 The Federation of Muslim Women’s Associations in Nigeria (FOMWAN) raised concerns about how tax policies may indirectly affect women and children, particularly in low-income families. FOMWAN’s submission called for more gender-sensitive tax policies, advocating for measures that would reduce the financial burden on households headed by women. They also proposed special tax deductions or credits for women-owned small businesses to empower female entrepreneurs.

Interfaith Network: Increased Social Spending with Tax Revenues

 A coalition of smaller religious groups, under the umbrella of the Interfaith Network for Social Justice, submitted a joint memorandum emphasizing the need for tax reforms that align with ethical values across all faiths. The group called for increased social spending from tax revenues to address education, housing, healthcare, and infrastructure in underserved areas. They also urged the government to establish mechanisms that ensure public accountability and prevent misuse of public funds.