FG’s tax reforms to benefit poor Nigerians— Presidency

...says Nigeria's economy shows signs of recovery

Tax

Sunday Dare, President Bola Tinubu’s media and public communications adviser, has said that the proposed tax reforms will benefit poor Nigerians.

Dare made this statement on Monday, reacting to the National Bureau of Statistics’ (NBS) recent gross domestic product (GDP) report.

Recall that President Tinubu had in October requested the national assembly to consider and pass four tax reform bills, including the Nigeria tax bill and the joint revenue board establishment bill.

Despite opposition from northern governors, Tinubu urged the national assembly to proceed with the legislation.

Dare explained that the reforms aim to reduce the tax burden on small businesses. “The proposed tax reforms also indicate the administration’s resolve to reduce the tax burden on small businesses and spread prosperity to the poor,” the presidency stated.

The new tax regime seeks to promote equity by reducing the “headquarters effect,” where states with company headquarters receive more benefits due to tax remittances, in favour of spatial and demographic equity.

Dare noted that the growth recorded in the third quarter (Q3) GDP report indicates that federal government reforms are yielding results. The NBS reported a 3.46 percent year-on-year GDP growth in Q3 2024, exceeding the 3.19 percent growth in Q2 2024.

Dare stated that the report aligns with Tinubu’s goal of boosting the economy and improving Nigerians’ standard of living. “The 3.46% growth indicates Nigeria is recovering from the reforms’ unintended effects,” he said.

According to Dare, President Tinubu reaffirmed his commitment to achieving a $1 trillion economy by 2030. Tinubu also assured that once the economy is rebased by early 2025, the country will be on its way to shared prosperity.

“I am excited by the latest report from the National Bureau of Statistics that our economy grew in the third quarter more than last quarter and even beyond projected estimates,” Tinubu said.

Tinubu acknowledged that despite the progress, much work remains to be done. “We won’t rest until Nigerians feel the positive impacts in their pockets and experience a better living standard.”

Tinubu emphasized that his administration remains committed to Nigerians’ welfare.

 

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