Peter Obi urges FG to suspend new tax laws over critical flaws

The Labour Party presidential candidate in 2023, Peter Obi, has called on the Federal Government to suspend the rollout of Nigeria’s newly gazetted tax laws, citing major errors that could hurt businesses and taxpayers.

Obi shared his concerns on X (formerly Twitter) on Tuesday, referencing a report by KPMG Nigeria that identified serious gaps in the tax regulations.

Among the flagged issues are the taxation of shares, dividend treatment, obligations for non-residents, and foreign exchange deductions.

According to Obi, the KPMG report pointed out 31 critical problem areas, from drafting errors to glaring policy contradictions and administrative gaps.

He stressed that these issues were so complex that private meetings were needed between the National Revenue Service and KPMG just to address them.

“If experts require closed-door discussions to navigate the complexities of our tax laws, what hope does the average Nigerian have of comprehending the obligations being imposed on them?” Obi asked.

He further emphasized that taxation is a social contract between the government and citizens. Obi highlighted the lack of public consultation in the process, noting that:

“Typically, months, if not years, are dedicated to consulting with businesses, workers, and civil society before tax drafts are presented for public discussion, with the ramifications clearly explained.

Yet, in Nigeria, we have seen no such public consultations or discussions regarding the final tax laws, leaving ordinary citizens completely in the dark about both the regulations and the benefits of the taxes they’re expected to pay.”

Obi’s intervention adds pressure on the government to review the laws and ensure transparency, fairness, and public participation before implementation.

With these “31 critical flaws” exposed, the spotlight is now on the FG to address the gaps and avoid placing undue burden on taxpayers and businesses.