An expert has warned FG that tax reform could worsen poverty in the country.
Glamtush reports that a development expert and founder of the Global Initiative for Nigeria Development, Micheal Ale, has cautioned the Federal Government against implementing tax reforms that could deepen poverty among Nigerians.
This online news platform understands that Ale, in a statement on Thursday in Ado Ekiti, Ekiti State, described the proposed tax reforms as “a grossly capitalist policy” that would stifle economic growth and worsen the plight of the masses.
He urged the government to focus on creating an enabling environment and addressing social concerns instead of burdening citizens with additional taxes.
“Tax reform will make the poor poorer and the rich richer,” Ale said.
Ale argued that sustainable development required more than just increased revenue.
“For me, budgetary increase is not the sole indicator of national development. Environmental and social considerations are critical. Whatever is spent on infrastructure will not result in meaningful development if these other factors are neglected,” he said.
He also stressed that Nigeria’s current economic climate was unsuitable for such capitalist-driven reforms, noting that the poor would ultimately bear the brunt of increased taxation.
“Even if companies are taxed, the adverse effect will trickle down to the people who patronize their products and services. The poor always pay for the rich, irrespective of how the tax is structured,” Ale added.
To mitigate the impact of taxation on the masses, Ale proposed a progressive tax system where individuals and businesses are taxed based on their financial capacity.
He also called for stricter corporate social responsibility measures, urging companies to contribute to public infrastructure.
Ale further recommended that government revenues be channeled towards research, job creation, and human capital development, which he said would yield long-term economic benefits.
“More budgetary allocations should not only focus on development but also on increasing research output, job creation, and training for human capital development,” Ale advised.
The development expert called on the Federal Government to adopt policies that promote inclusivity and equity, ensuring that reforms do not disproportionately affect vulnerable Nigerians.
