Senator Ayo Arise has expressed his support for the tax reform bill introduced by President Bola Tinubu, saying the country cannot survive without any form of taxation.
The former lawmaker who once represented Ekiti North Senatorial District said this while addressing newsmen over the weekend.
Arise said: “The country under the current political dispensation has focused more on exportation of goods and services, adding that the tax reform bill will further strengthen its export capacity.
“No nation can survive without one form of taxation or the other. Otherwise, there is no way the country can generate income. We have been talking about subsidy removal and everyone knows this country can no longer live on that single product.
“The president wants to see the country generate more revenue. If you look at the excise levies, Nigerians are now exporting more than under any previous government. These are part of the achievements of this government. People are beginning to be productive. They are exporting in droves. They are exporting our culture, including our clothes.
“They are exporting our textiles and other items like cashews. I had an opportunity of speaking with the Comptroller-General of Customs and I asked him questions concerning our exports. In the past people used to bring in so many products but the ships returned almost with no cargo. That is no longer the case. So, things are improving in terms of activities at the customs because we are exporting more.”
Asked if the huge trust deficit could be because the government did not do enough in terms of consultation and because of the attitude of the political class, he said, “Some policies of this government point in a different direction. There is the student loan, which is for indigent students. Once you have an education, what you do with it will determine how your life will pan out.
“So, such funds will be targeted at that and I’ve seen that our budget is getting friendlier towards infrastructure development. So, it’s no longer the case where you see the recurrent expenditure overtaking the capital infrastructural development money. Our foreign reserve has been going up under this government despite the difficulties. Yes, the removal of petroleum subsidies has caused some hardship. But, it has also brought some benefits to the country. We had no choice; it was the right thing to do. It was illogical that we were satisfied with enjoying the benefits of crude oil selling at maybe $70 or $75 per barrel but did not want to pay for the refined products at the prevailing international market price. If we had continued to subsidize, we would have reached a point where we would have no money to develop our infrastructure. The government is spending more money on security nowadays. Farmers and herders clashes faced some years back are subsiding. You are no longer hearing the problem or maybe, well, they might still be having cattle rustling and all that, but the danger to human life has started reducing somehow.
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“We’ve got into a perfect solution but the situation is stabilizing. Now apart from Dangote, Port Harcourt Refinery is working. I understand Warri is going to come on stream soon. So, the government is working.”
The argument is based on the derivation clause in the sharing of VAT proceeds, which the North believes would be inimical to its economic interests if the tax bills are passed.
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