Activista Nigeria has raised concerns over the proposed Nigeria Tax Bill, 2024, describing it as a threat to the economic well-being of ordinary citizens. The organization argued that the bill, while aimed at consolidating tax laws and boosting revenue, disproportionately burdens low-income earners and vulnerable populations amid rising inflation and unemployment.
Key provisions, including an increase in Value Added Tax (VAT) from 7.5% to 10%, and expanded excise duties on telecommunications, are seen as regressive measures that will escalate the cost of living. Activista Nigeria warns that these changes could exacerbate poverty for over 133 million Nigerians already classified as multidimensionally poor.
In a detailed Position Paper on the Tax Reform Bill 2024, made available to The World Satellite, the organization criticized the lack of tax exemptions for essential goods such as food and healthcare. It also highlighted the bill’s potential to stifle small and medium enterprises (SMEs), which account for over 80% of Nigeria’s workforce, by imposing stricter tax compliance requirements.
Activista Nigeria further noted the bill’s gender and environmental blind spots. Regressive taxes disproportionately affect women, particularly those in informal sectors, while the failure to penalize polluting industries undermines climate justice efforts.
READ ALSO: Activista Nigeria Demands Release of Detained Protest Minors
The group advocated for a progressive tax framework, prioritizing luxury goods and high-income earners, and called for transparent allocation of tax revenues to healthcare, education, and infrastructure. Activista Nigeria insisted that taxation reforms must focus on reducing inequality, fostering economic growth, and uplifting the lives of all Nigerians.
