- Senator Ndume suggested to President Bola Ahmed Tinubu’s administration to expand sources of income for Nigerians
Mohammed Ali Ndume, Senator for Borno South, has joined forces with Northern elders to oppose the Federal Government’s proposal to increase the country’s tax regime.
In a communiqué issued at the conclusion of the meeting on Monday, the leaders expressed strong reservations about the contents of the recent Tax Reform Bill that was forwarded to the National Assembly, claiming that they were detrimental to the interests of the North and other sub-nationals, particularly the proposed change to the distribution of value-added tax (VAT) to the derivation-based model.
While aligning himself with the stance of Northern elders, Senator Ndume suggested to President Bola Ahmed Tinubu’s administration to expand sources of income for Nigerians and ensure that Nigerians are not merely existing but living.
The former Leader of the Senate lamented and decried what he called the elimination of the middle class occasioned by the high inflationary rate and demanded that positive steps be taken to bring succour to Nigerians.
“This tax they’re talking about, we are almost losing the middle class in Nigeria. Either you have it or you do not have it. Those that are in the middle are being squeezed out. If Nigerians can pay for those taxes, it is okay.
“But in the current situation, increasing taxes is not an alternative at all. I will not support any increase in tax.
“Let us get things right first. Let people start living and not survive. Let people have extra income, and then you can tax them. I like to use an example of common sense. Allow Nigerians to have enough blood in their body before you start asking for a donation,” Ndume stated.
The lawmaker accused the Minister of Finance, Wale Edun, and Chairman of the Federal Inland Revenue Service (FIRS), Zach Adedeji, of instigating what he described as anti-people economic reforms.
“The poverty is too much in the north. Let us be frank about that. So, you want to increase taxes again? Tax those people who can afford it. Those who can afford the taxes in Nigeria—I do not want to be particular about it—are not even paying the taxes. These big companies do not even declare their income, not to mention getting the appropriate taxes.
“I am one of those opposing that tax bill in the National Assembly. I am not going to support it. In fact, I am going to start campaigning against the increase in tax for now because it does not only affect the north but the average Nigerian.
“I am not saying people should not pay tax, but do not go and tax people that are barely struggling to survive. You are paying somebody N70,000 as a minimum wage, and all of a sudden, the price of fuel goes up to N1,000. It means that if you put the arithmetic together, you see that you would have continued paying me the N30,000 and allowed the litre of fuel to be N100.
“It is like giving you with one hand and taking it with the other hand. Let the tax authority focus on those who are supposed to pay tax. For example, in Abuja, if you go around, there are a lot of properties in there that are not paying taxes. Fortunately, you have Nyesom Wike, who stands up to do something about it.
“People are not paying property taxes. These banks, for example, are making tonnes and tonnes of money, and they are not paying taxes. And they are collecting taxes. If you transfer money, they are collecting taxes. If you receive money, they are collecting taxes. And they declare profits. Go and check their taxes. Now you want to squeeze somebody who is barely trying to survive because there are many.
“You need to start from somewhere that is acceptable. I, at one time, proposed a bill for communication and phone owners to pay tax. It didn’t see the light of the day.
“You are talking about Abuja here. Many people do not have access to mobile phones. Anybody who can access a phone should be able to pay tax.”