- By Demola Atobaba, Ado-Ekiti
A Development Expert, Mr Micheal Ale, on Tuesday called on the Federal government to revert the proposed tax reform policy in the interest of the masses.
Ale, who is the founder of Global Initiative for Nigeria Development, (GIND, gave the advice in a statement issued to the newsmen in Ado-Ekiti on Tuesday.
He said the defence of the Chairman of the Presidential Committee on Fiscal, Policy and Tax Reforms (PCFPTR), Mr Taiwo Oyedele, on the tax reforms policy was not tenable and acceptable.
Ale explained that Oyedele’s declaration that Nigeria lacks enough budget allocation to provide developmental facilities was confusing, myopic and grossly incompetent.
According to him, his submission does not address the country’s current economic and development inadequacies in the country.
The development guru appealed to the federal government to desist from unfair comparison of the country’s revenue strength with other countries that have different socio-economic status.
He added that there are other indices that must be considered other than the strength of a nation’s revenue.
“According to him, Oyedele compared Nigeria’s annual budgetary allocation to those of Kenya and South Africa, stating that the relatively low revenue of the nation, considers giant of Africa has prevented her from getting befitting infrastructures and fulfilling her development dreams.
Ale said such explanation was not only confusing, one-sided but unhealthy for meaningful and holistic development.
“There are other indices to be considered on planning for development other than revenue strength.
”Mr Oyedele defence of the tax reforms policy is confusing and rubs on the research acumen of most development practitioners.
” Partial implementation of development strategy, micro or macro is inimical and shortchanged the tax payers.
” When tax is paid, the people naturally demand for development in return as this is a social contract. But the rush in taxes’ upgrade will further plunge the people, especially the masses, into abject poverty,” he said.
Ale particularly disagreed with Oyedele’s comparison of Nigeria’s revenue strength to those of Kenya and South Africa, saying that his submission was misleading.
The development expert advised the federal government to desist from implementing a grossly capitalist policy such as tax increase.
He urged the federal government to revert the tax reform policy to enable people to live healthy and comfortably.
“The country is really not ripe for such capitalist reforms agenda the tax reform will make the poor go poorer and the rich, get richer, but the poor will always pay for the rich irrespective.
“Even if the company is taxed, its adverse effect goes to the people who patronise their products and services. So,the poor bears the brunt of such capitalist policy, irrespective of how the tax is reformed, the poor becomes poorer.
“I want to advice the federal government to make the tax affordable for the differing classes according to their capacities and compel the companies in the upper class to provide high class social facilities for the benefit of the people and such facilities could be named after their companies.(NAN)
