•Senator Sani Musa
Senator representing Niger East and Chairman, Senate Committee on Finance, Sani Musa has said increase in taxes would not necessarily drive economic growth.
The lawmaker whose Committee has been saddled with the responsibility to look at the Tax Reform Bills by the Red Chamber made the declaration today while speaking with journalists shortly after the passage of the MTEF/ FSP2025–2027.
Amidst agitation against the proposed legislation, the lawmaker maintained that what would stimulate economic recovery, growth, and development is production, not taxation, reports Nigerian Tribune.
He said: “Every country that wants its economy to change must from time to time have to look at those parameters to move its economy.
“And I have said it times without number on the floor that tax isn’t a tool of economic growth.
“What you will see that will change the face of any economy of any nation is production. It is out of that production that you will be able to make the taxes, you will be able to realize the taxes.”
But at a separate session with newsmen, Senator Jimoh Ibrahim bemoaned the existing tax net which he claimed is leaving out 72 percent of those that are taxable.
He said: The Gross Domestic Product ( GDP)
to tax ratio is 18%. About 72% are left out of the tax net. We should be worried that 72% are not in the tax net. I am not saying we should go and tax the poor population but the rich need to do more in these difficult times.”
The Chairman of the Senate Committee on Finance expected to submit its report on the Tax Reform Bills in six weeks, in deference to the timeline given by the Red Chamber asked Nigerians to be patient as he assured that his team and ultimately, the Senate would be fair to all on.
“The issue of tax reform is with us but we are doing wider consultations. It isn’t about this region or that region. For me, it is about Nigeria.
“What is good for me should also be good for my brother. And what is good for my brothers should also be good for me.
“So, the answer I will give you about this is that allow the committee, allow the National Assembly to do the needful. At the right time, we make the right statement about this.”
Speaking on the Senate resolution to investigate the Nigerian National Petroleum Company Limited, ( NNPCL), the lawmaker said the motive was to examine remittances from the oil giant.
“The issue of statutory committees looking at
NNPCL. As far as I understand, the NNPCL, the issue is about remittances. “We need to look at their books and reconcile it with NEITI claim. Our concern is the revenue and what caused the shortages so what is due to the FG should go to FG. That will be our findings. Where is the money and who is supposed to remit what.”
Senator Musa also justified the N1,400 to a Dollar as a benchmark for crude oil sales in the 2025 budget projection.
The lawmaker who admitted that the existing forex rate was higher than the government benchmark said excess revenues earned could be used to service debt or improve existing infrastructures.
