Buhari’s aide, Tolu Ogunlesi, questions Kingsley Moghalu’s proposed tax policy

The Special Assistant to President Muhammadu Buhari on Digital and New Media, Tolu Ogunlesi, has questioned the tax method proposed by a president aspirant, Kingsley Moghalu.

Moghalu, a former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, had said he would reduce taxes and abolish multiple taxation if voted President in 2023.

Moghalu explained via Twitter on Thursday, that having many taxpayers pay reduced taxes is economically rewarding, compared to a small group of persons paying high and multiple taxes.

Ripples Nigeria 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 People’s 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 former and informal markets.

“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 wrote on Twitter.

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 said.

Read also: ADC plans to merge with other parties to form third-force —Moghalu

Reacting to Moghalu’s proposed tax policy, Ogunlesi questioned how the Presidential hopeful plans to achieve abolishing multiple sub-national taxes without confrontation from the states’ governors.

Moghalu responded, “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.”

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.

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