In a statement posted on his official X handle on Tuesday, Obi said it had become “undeniable that the tax laws have been fundamentally altered

The Labour Party presidential candidate in the 2023 election, Peter Obi, has urged the Federal Government to suspend the implementation of the newly amended tax laws, warning that the legislation is inconsistent, poorly drafted, and poses serious risks to Nigerians.

In a statement posted on his official X handle on Tuesday, Obi said it had become “undeniable that the tax laws have been fundamentally altered.”

He noted that even KPMG, a global accounting firm, had identified 31 critical problem areas ranging from drafting errors to policy contradictions and administrative gaps.

According to him, such findings should compel any responsible government to act immediately.

Obi expressed concern about the lack of openness surrounding the review of the tax laws.

He said it was troubling that the issues only came to light after private meetings between the National Revenue Service and KPMG.

“If experts require closed-door discussions to navigate the complexities of our tax laws, what hope does the average Nigerian have of comprehending the obligations being imposed on them?” he asked.

The former Anambra State governor described taxation as a social contract between the government and citizens.

“Taxation transcends mere fiscal policy; it represents a social contract between the government and its citizens,” Obi said.

He argued that such a contract cannot be enforced if it is neither understood nor trusted by the people.

Obi criticised what he described as the government’s focus on revenue extraction rather than public welfare.

He said globally, tax policies are justified by tangible benefits such as improved healthcare, better education, job creation, infrastructure, and social safety nets.

“This is what the social contract signifies,” he stated.

He added that in Nigeria, the emphasis appears to be on how much more the government wants to collect, rather than what it intends to offer citizens in return.

“A tax system devoid of clear public benefits isn’t reform; it is, quite frankly, extortion,” Obi said.

On public engagement, Obi faulted the absence of consultations before the tax laws were finalised.

He said in most countries, months or even years are spent consulting businesses, workers, and civil society before tax proposals are adopted.

According to him, citizens are usually informed not only about what they will pay, but also about the benefits they should expect.

“This is how legitimacy is cultivated,” he said.

Obi maintained that no such process was followed in Nigeria, leaving citizens confused about both the rules and the expected benefits.

He also criticised what he described as a rush to enforce new tax measures.

“We have hastily pursued collection without securing a consensus and imposed enforcement without providing adequate explanations,” he said.

Obi noted that Nigerians were still waiting to see benefits from the removal of fuel subsidies.

Instead, he said citizens were facing rising food prices, high transport costs, shrinking purchasing power, and worsening poverty.

He warned that introducing a new tax regime under such conditions could further inflame public frustration.

“Before we have even begun to address these issues, we are being thrust into an expansive new tax regime, riddled with inconsistencies and producing 31 alarming red flags from a leading global accounting firm,” Obi said.

He described the situation as a failure of responsible governance.

“Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without evident public value, it amounts to robbery,” he added.

Obi concluded by calling for a more inclusive and consultative approach to tax reform.

He said Nigeria could not afford to impose additional burdens on already struggling citizens.

“What we need is a government that listens, communicates effectively, and prioritises building national consensus,” he said.

According to Obi, this approach is the only path to genuine reform, unity, growth, and shared prosperity.

“A New Nigeria is not just a possibility; it is an imperative,” he added.

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