Tax reforms risk deepening hardship, Kachikwu warns FG

The 2023 presidential candidate of the African Democratic Congress (ADC), Dumebi Kachikwu, has warned that proposed tax reforms by the Federal Government could further deepen hardship across the country, saying Nigerians are already overstretched by the combined effects of economic reforms and insecurity.

Kachikwu, in his New Year message to Nigerians, said introducing additional taxes at this period would amount to compounding the misery of citizens who are struggling to sustain hope amid worsening living conditions.

“At this special time of the year in millions of homes across our nation, many will gather to make plans, fresh commitments and renewals to goals, plans and visions,” he said, describing the season as one traditionally defined by prayer, hope and expectation of a better future.

Oyedele to Nigerians: No automatic bank debits under new tax laws

He, however, lamented that hope was fast fading for many Nigerians. “Through no fault of theirs, life has become more precarious in our nation as the toll of economic reforms and insecurity increases,” Kachikwu said, adding that the situation was “further exacerbated by a political leadership that appears insensitive to the plight of the people.”

Drawing a biblical parallel, the former presidential candidate said the suffering of Nigerians had reached disturbing levels.

“The suffering of Nigerians in present-day Nigeria can only be likened to the biblical story of the suffering of the Israelites in Egypt under Pharaoh, questioning whether President Bola Tinubu would want to be remembered for presiding over such hardship. “Surely President Tinubu doesn’t want to go down in history as the President who precipitated an Exodus from Nigeria.”

While acknowledging the poor state of the economy inherited by the administration, Kachikwu argued that the policy response had inflicted severe pain on ordinary citizens.

“Any reasonable Nigerian understands that upon assumption of office, our President was confronted with a comatose economy that needed urgent surgery. But this surgery has now decapitated the legs and arms of Nigerians who are supposed to be the beneficiaries of the economic resuscitation.”

He alleged that the gains of government policies were skewed in favour of a few. “Our president must understand that the major beneficiaries of his policies are the legal robbers who instigate government policies that mostly benefit their companies to the detriment of most Nigerians,” Kachikwu said.

On taxation, he maintained that Nigerians could not cope with additional fiscal pressure. “We understand the need for tax reforms, but an already overburdened populace can’t afford any more taxation, especially when they mostly believe the government does nothing meaningful with its current revenues,” he stated.

According to him, the reforms would further shrink the middle class. “This tax reform will further erode the ranks of the Nigerian middle-class who have resorted to paying exorbitant fees for quality education, healthcare and other social services because of our failed public institutions,” he said.

Kachikwu warned that pushing ahead with the reforms could have grave consequences. “My fear is that if implemented as promised by our president, the tax reforms will instigate a crisis of unprecedented proportions in our nation, which no one can afford, especially with our current security issues urging the government to prioritise empathy.

“What our president owes our struggling masses is care, compassion and support and not anything that will further compound their misery in this new year.”

He clarified that his position was not driven by opposition politics, noting that he had previously supported some of the President’s initiatives. “I have applauded some of the president’s bold initiatives, and if I choose not to run for office, I will support him any day above the failed politicians masquerading as the opposition,” he said.

He, however, stressed that he would oppose any policy that worsens living conditions. “I must tell him today that I am not in support of this tax reform or any other reform that further decimates the livelihoods of ordinary Nigerians,” Kachikwu said.

He urged the administration to align its actions with its stated vision. “He can’t champion his ‘Renewed Hope Agenda’ whilst at the same time cutting short the hopes of Nigerians,” Kachikwu said.