‘Taxpayer Is Like A Blood Donor, Don’t Drain All The Blood In His Body’ – Adebayo Tells Tinubu

The Social Democratic Party (SDP) candidate in the 2023 presidential election, Adewole Adebayo, has criticized the taxation policy of the Bola Tinubu-led Federal Government, describing it as the worst in Nigeria’s history.

Speaking in Lagos during the 2024 annual dinner and awards of The Chartered Institute of Taxation of Nigeria, where he was a special guest of honour, Adebayo lambasted the government’s approach to tax administration, saying it reflects the dysfunctionality of the country’s leadership.

He also dismissed the narrative promoted by the All Progressives Congress (APC)-controlled government that increasing revenue through taxation automatically translates to development.

Adebayo said, “No. It does not. Taxation is one of the major ways the government is funded. Tax is a government function.”

“Unfortunately, the government has been dysfunctional over time. In a dysfunctional government system, the tax system will also be dysfunctional. They are not right in their tax policies, as well as fiscal and monetary management. They are not right in many aspects of social delivery. Unfortunately, this is the best they know.

“Revenue is one of the functions of taxation. The taxpayer is like a blood donor. You don’t drain all the blood in his body. Otherwise, he will die. Moderate the management of taxation and imposition of levies so that there will be disposable income to use in developing the country. Higher revenue that will kill industries and initiatives, and further pauperise the people.

“It is your responsibility to advise those who are responsible for taxation that higher revenue is not the only success story.”

Adebayo emphasised that taxation must foster development and redistribute wealth from those who have too much to those who don’t to train the next generation of taxpayers by providing education and social services.

According to him, a sound taxation system should encourage business growth, which automatically brings about employment, increased productivity, and, ultimately, increased taxation in the country.

“There are many ways you can help to create a better society. Taxation is not just about revenue. It can be used as a value for the country. You can give incentives to activities you want people to engage in. You can use taxation to distribute and redistribute wealth in society to make it more equitable. You can use it as a stimulus when there is an economic crisis. It can be used to discipline when we are misbehaving in any aspect of our lives. Taxation is used to control inflation and manage public expenses. It can be used to better the lives of the citizens by providing infrastructure and basic social services.”

“A society that has a good tax system will have hardworking citizens because the real wealth of a country is when people work hard enough and then spare some contributions to society. Taxation is the foundation of any economy, and Nigeria is not an exception. However, you cannot make an omelette without breaking an egg, but when you break an egg and people are not seeing the omelette, that’s when they begin to wonder where the egg is. That is the question to answer for the people who are responsible for the management of our resources,” he stated.

The Minister of Justice and Attorney General of the Federation, Prince Lateef Fagbemi, SAN, who was the special guest of honour, in his speech, said no society or government succeeds without taxation.

“Any country that closes its eyes to taxation is doomed. Countries exist without oil or other natural resources except through taxation, and they fare better than some countries with mineral resources. That was where we started, and that is where we will return,” he stated.