On July 7, 2023, President Bola Ahmed Tinubu signed four executive orders including the finance act of 2023 which was earlier signed into law by his predecessor, Muhammadu Buhari on May 28, 2023. The revised version of what Tinubu signed into law gave room for the three-month window for its implementation which now takes effect from September 2023.
A major complaint by the stakeholders was that of multiple taxation which cripples businesses in no small measure.
A Professor of Economics at the Olabisi Onabanjo University and popular newspaper columnist, Prof. Sheriffdeen Tella had this to say about the new finance act signed into law by President Tinubu.
The erudite scholar said: “Multiple taxes often discourage investment and where it's possible to pass a large proportion of the tax to consumers, it discourages consumption. Whichever way, it's not good. You cannot have a unified tax framework in a simple form. What's important is for fiscal authority to identify where there is tax overlap and discontinue one for the other based on expected revenue or economy.
There's no need to set up a board but a tax harmonization unit under the Ministry of Finance with tax and tariff streamlining as part of the functions.
The protection of infant industries is part of the basic objectives of taxation. So much protection can be just part of tax administration without the enactment of a law that needs to spell out procedures and penalties with its cumbersomeness when the policy requires administrative changes”.
On the role of the incoming Finance Minister and CBN Governor, he went on to say: “The Ministry of Finance is in charge of taxes, tariff, duties, and all such fiscal measures. The committee on taxes set up by the President would have assisted the incoming minister greatly with its output but the Minister can ask for further assistance if desired. Albeit, the Minister and CBN Governor must work together for successful economic policy formulation and implementation”.
He reiterated the need for an export or perish policy and concluded: “Our non-oil exports must meet international standards to gain customers. Government should provide support for exports through some well-thought-out subsidies in many advanced and emerging markets. A study needs to be carried out or they ask trade experts on what to do, in our universities.
My stand has always been that we concentrate on producing what we consume to reduce importation and minimize capital outflow”.
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