April 28, (THEWILL) – The Presidency on Thursday, tackled a former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, on his plan to abolish multiple taxation if he becomes Nigeria’s president in 2023.
THEWILL had reported that Moghalu, former governor of Kano state and Presidential hopeful, Rabiu Kwankwanso, as well as economic expert, Pat Utomi, are planning to establish a third force against the All Progressive Congress (APC) and the Peoples Democratic Party (PDP) in the 2023 general election.
In his usual fashion, Moghalu has often taken to Twitter to share his policies if elected President, hence, his tweets about abolishing multiple taxation in the formal and informal markets.
Moghalu, a presidential hopeful had on his Twitter page on Thursday, said his government would reduce taxes and abolish “multiple, including informal taxation”, if he emerged President in 2023 general election.
“As President of Nigeria from 2023, my government will reduce taxes and abolish multiple (including informal) taxation of small, overburdened businesses, but work to ensure that many millions who should pay taxes but don’t, actually pay.
“Many more people paying reduced taxes will generate more revenues than a small group paying high and multiple taxes”, he tweeted.
He further stated that high taxation was not the solution to Nigeria’s revenue problem, but tax collection, adding, that Nigeria’s tax to GDP ratio was poor, and only higher than those of Somalia and Yemen.
“But with a tax to GDP ratio of 8%, one of the lowest in the world and higher only than Somalia and Yemen, Nigeria fails a very important measure of state capacity – the ability to collect and use taxes effectively and efficiently. A #KingsleyMoghalu Presidency will change this”, he added.
But reacting to Moghalu’s proposed tax policy, the Special Assistant to President Muhammadu Buhari on Digital and New Media, Tolu Ogunlesi, who responded under the tweet, asked Moghalu to explain how he plans to abolish the informal subnational taxes in a federal system.
“Prof, how do you intend to “abolish” informal SUB-NATIONAL taxes in a federal Democratic system?”, Ogunlesi tweeted.
However, Moghalu responded that he plans to reform the federal tax system and will collaborate with states through the National Economic Council.
“We will reform the federal tax system, and we will collaborate with states through the National Economic Council as part of a national approach to a national vision of the economy without taking away from the powers of sub-national units”, he answered.
However, Ogunlesi said eliminating multiple taxation is difficult without threatening to wield the big stick or withholding grants, “FG has agreed with NGF to cap RoW for broadband at N145 per linear meter, many States are still not implementing it, and there’s really not much the FG can do in this regard to compel them. I think realism is very very important in these matters. An ongoing lesson.
“Of course you can find ways to force them (threaten to withhold special FG grants from non-complying States, for example), but this is a big stick that must be wielded sparingly and strategically. Can also create resentment among Govs”, Ogunlesi wrote.
