Tax laws face legitimacy crisis

Amid the intensifying pushback from some lawmakers, political parties, civil society and regional groups as well as other critics, the tax laws are facing a legitimacy crisis.

The Nigerian Bar Association (NBA) yesterday demanded immediate suspension of the implementation of the tax laws pending a comprehensive investigation into alleged irregularities in the legislative process.

In a statement yesterday, NBA President Afam Osigwe (SAN) said the controversy surrounding the passage of the Tax Reform Acts raised serious concerns about the integrity, transparency and credibility of Nigeria’s lawmaking process.

Osigwe said allegations of discrepancies between the versions of the laws passed by the National Assembly and those later gazetted strike at the heart of constitutional governance.

“The Nigerian Bar Association considers it imperative that a comprehensive, open and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process,” he said.

Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended.”

Osigwe warned that uncertainty surrounding laws of such economic significance could have far-reaching consequences.

“Legal and policy uncertainty of this magnitude unsettles the business environment, erodes investor confidence and creates unpredictability for individuals, businesses and institutions required to comply with the law,” he said.

He added that such uncertainty was inimical to economic stability and incompatible with the rule of law.

Nigeria’s constitutional democracy demands that laws — especially those with profound economic and social implications — emerge from processes that are transparent, accountable and beyond reproach,” Osigwe said.

The NBA urged all relevant authorities to act swiftly in the interest of constitutional order, economic stability and the preservation of the rule of law.