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Tinubu’s Tax Reforms: A Masterstroke for Lagos State’s Economy -By Umar Zanna Wakil

I also urge Lagosians to be patient and give the reforms a chance to work. With careful planning and implementation, I believe that the reforms can help to stimulate economic growth, create jobs, and improve the overall quality of life for Lagosians.

Published

9 months ago

on

Tinubu
As I read the recent news about President Tinubu’s tax reforms, I couldn’t help but wonder how these reforms will impact Lagos State. The reforms, which include an increase in Value Added Tax (VAT) from 7.5% to 10% by 2025, have been touted as a way to boost revenue for the federal government.
However, as Governor Sanwo-Olu pointed out, Lagos State is set to benefit significantly from these reforms. The state’s share of VAT revenue is expected to increase, providing a much-needed boost to the state’s finances.
But what does this mean for the average Lagosian? Will they see any tangible benefits from these reforms? Or will they simply be asked to pay more in taxes without seeing any improvements in public services?
As I see it, the tax reforms have the potential to be a game-changer for Lagos State. With more revenue at its disposal, the state government can invest in critical infrastructure projects, such as roads, bridges, and public transportation.
This, in turn, can help to stimulate economic growth, create jobs, and improve the overall quality of life for Lagosians. But, as with any policy initiative, there are potential risks and challenges that need to be carefully managed.
One of the biggest concerns is the potential impact on low-income households. Will they be able to afford the increased cost of goods and services that will result from the VAT increase?
This is a question that policymakers need to carefully consider. Perhaps, the government could consider implementing measures to mitigate the impact of the VAT increase on low-income households, such as increasing the threshold for VAT exemptions or providing targeted subsidies.
Another concern is the potential impact on small and medium-sized enterprises (SMEs). Will they be able to absorb the increased cost of the VAT increase, or will it push them out of business?
Again, this is a question that policymakers need to carefully consider. Perhaps, the government could consider implementing measures to support SMEs, such as providing tax breaks or access to finance.
Despite these concerns, I believe that the tax reforms have the potential to be a positive development for Lagos State. With careful planning and implementation, the reforms can help to stimulate economic growth, create jobs, and improve the overall quality of life for Lagosians.
But, as with any policy initiative, there are no guarantees of success. It will be important to carefully monitor the impact of the reforms and make adjustments as necessary.
In conclusion, I believe that the tax reforms proposed by President Tinubu have the potential to be a game-changer for Lagos State. But, it will be important to carefully consider the potential risks and challenges and implement measures to mitigate them.
I urge policymakers to carefully consider the potential impact of the tax reforms on low-income households and SMEs and implement measures to support them.
I also urge Lagosians to be patient and give the reforms a chance to work. With careful planning and implementation, I believe that the reforms can help to stimulate economic growth, create jobs, and improve the overall quality of life for Lagosians.
Umar Zanna Wakil, Department of mass communication, Borno State university
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