Government Does Not Generate Revenue Independently

Spread the love

Former Edo State Governor and Nigerian lawmaker, Adams Oshiomhole, has stated that President Bola Tinubu’s tax reform agenda aligns with the principles of progressive governance, stressing that the policy is designed to ease the financial burden on low-income earners while placing greater responsibility on wealthier citizens.

Oshiomhole made the remarks during an appearance on Channels Television, where he explained that the current tax reforms represent a deliberate effort to promote fairness and economic balance.

According to him, he was one of the lawmakers who actively backed the tax legislation that was recently passed into law.

“The realities on ground clearly show that President Tinubu’s tax approach reflects the ideals of a progressive administration,” Oshiomhole said.

“This reform is structured to ensure that individuals who earn more contribute proportionately more, while those with lower incomes receive exemptions and relief,” he added.

The former labour leader further reaffirmed his strong support for the new tax framework, noting that taxation remains the backbone of governance and public service delivery.

“It is quite misleading when people suggest that government generates money independently. Governments do not earn income; rather, citizens and businesses generate earnings, which are then taxed. These taxes collectively form the financial base that sustains government operations annually,” he explained.

Oshiomhole also pointed out that the revised tax system would offer significant benefits to working families, helping to ease their economic challenges.

Addressing concerns surrounding Value Added Tax (VAT), the senator said ordinary Nigerians have little to worry about, as VAT primarily applies to luxury and non-essential items.

He further criticised Nigerians who willingly pay VAT on purchases made abroad but oppose paying similar taxes within the country.

“Across the world, VAT is charged on non-food items. Nigerians pay VAT when shopping in places like the United States, London, and Dubai, yet they complain when the same tax is applied at home,” Oshiomhole remarked.

TAGS: Nigerian politics