SERAP Urges National Assembly To Assess Human Rights Impact Of Tax Reform Bills
The Socio-Economic Rights and Accountability Project (SERAP) has called on Senate President Godswill Akpabio and Speaker of the House of Representatives, Tajudeen Abbas, to urgently assess the human rights impact of Nigeria’s tax reform bills, especially in relation to citizens living in poverty.
In a letter dated December 7, 2024, SERAP emphasized that the consideration of these bills must align with the provisions of Nigeria’s Constitution and the country’s international human rights commitments. The organization stressed that any assessment should be transparent, inclusive of public participation, and result in widely published outcomes.
SERAP also urged Akpabio and Abbas to pass a resolution directing the Attorney General of the Federation, Lateef Fagbemi, SAN, to hold state governors accountable for the management of tax revenues, including VAT, which has amounted to trillions of naira since 2015. The organization called for action to recover any funds misappropriated through corruption.
The letter pointed out the need for the inclusion of transparency and accountability mechanisms in the tax reform bills to prevent mismanagement of tax revenue by politicians and their associates. SERAP noted that while Nigeria has the discretion to develop its tax laws, they must be consistent with the country’s constitutional and international obligations.
SERAP also raised concerns over specific provisions in the tax reform bills, particularly those related to financial institutions. Section 28(2)(c) of the Tax Administration bill, for instance, mandates banks to disclose customers’ personal information to tax authorities, which could infringe on individuals’ right to privacy if misused. Additionally, the bill grants extensive powers to tax authorities under Section 57, raising concerns about potential abuses of power that could violate human rights.
Another problematic provision, Section 81, could undermine the judicial process by allowing tax duties to proceed despite ongoing legal disputes. SERAP warned that these provisions could lead to the erosion of privacy rights and judicial independence.
SERAP also highlighted the issue of corruption, with reports suggesting that several state governors continue to mismanage tax revenue, which hinders the provision of essential public goods and services. The organization expressed concern that some governors’ opposition to the tax reform bills could be politically motivated, reducing tax contributions to the national treasury.
In its letter, SERAP emphasized the importance of aligning the tax reform bills with human rights standards to ensure they support the realization of human rights and the effective delivery of public services. The organization called on the National Assembly to conduct and publish human rights impact assessments of the bills and to revise or repeal provisions that could undermine citizens’ rights.
The tax reform bills currently being discussed by the National Assembly aim to improve tax administration, compliance, and revenue generation in Nigeria. However, SERAP warned that without transparency and accountability, the revenue generated may not be effectively used to combat poverty or provide essential public services.
