By VICTOR IKEM

The Nigeria Tax Reform Bill 2024, introduced under President Bola Tinubu?s ?Renewed Hope? agenda, represents a significant overhaul of the country?s tax system. It aims to address inefficiencies, improve compliance, and build public trust in governance by introducing measures such as simplified tax rules, progressive income tax rates, and enhanced use of technology. Key highlights include consolidating tax laws, supporting small and medium enterprises (SMEs) through exemptions and incentives, and restructuring the Federal Inland Revenue Service into the Nigeria Revenue Service (NRS).

Despite its ambitious goals, the bill faces critical challenges tied to public trust. Nigeria?s tax-to-GDP ratio is one of the lowest in Africa, a symptom of systemic evasion and administrative inefficiencies. While reforms like raising the Value Added Tax (VAT) from 7.5% to 10% are intended to boost revenues, they have sparked concerns about worsening economic hardships for consumers and increasing regional disparities. Without clear transparency in how tax revenues are utilized, citizens may remain skeptical about the reforms? potential benefits

Building trust in public policy is pivotal for the bill?s success. This requires robust mechanisms to ensure accountability, equitable enforcement of tax laws, and reinvestment of revenues in critical infrastructure and social services. Lessons from other African countries, such as Ghana?s SME-focused tax regimes and South Africa?s digital tax administration, highlight the importance of simplicity and fairness in fostering compliance.

Ultimately, the 2024 Tax Reform Bill has the potential to reshape Nigeria?s fiscal landscape. However, its success hinges on addressing public concerns, maintaining transparency, and delivering tangible improvements in public services. Effective communication and engagement with stakeholders will also be crucial to aligning the reforms with the broader goal of fostering economic growth and equity.

Public policy and public trust are deeply interconnected. Public policy encompasses the principles, actions, and regulations that governments adopt to address societal issues. Public trust, on the other hand, reflects the confidence citizens have in their government and institutions to act competently, fairly, and transparently in the public?s best interest. Transparent policymaking processes increase public trust by ensuring citizens understand how and why decisions are made. The accountability mechanisms, such as audits, oversight committees, and public reporting, reinforce the perception that public officials are acting in good faith.

More importantly, Inclusive public participation in policymaking fosters trust by demonstrating respect for diverse viewpoints. Mechanisms like public consultations, hearings, and participatory budgeting help build stronger relationships between governments and communities just as it is currently being done. No doubt, the success of public policies in addressing societal needs directly impacts trust. Ineffective or poorly implemented policies can erode confidence. Policies perceived as fair and equitable are more likely to garner public support and trust. While consistent policies build trust by creating a sense of stability, frequent policy reversals or contradictory measures can undermine confidence.

Public trust is both a foundation and a goal of effective public policy. Policies designed with transparency, fairness, and inclusivity in mind is better positioned to foster a trusting relationship between governments and the public. With regards to the proposed Tax reform by the Tinubu government, it is important that the government and its agencies don?t attempt to impose its will on the people by assuming that it can do as it wishes without enlist the support and winning the trust of the people.

Adequate time must be given to discuss and debate the reforms proposed and all necessary amendments agreeable should be factored into the document to ensure that the public, for whom the bill is meant to assist, are well aligned with the objectives and goals of the bill. That way, public trust and confidence can be sustained even in future and subsequent public policy proposal.

?Victor Ikem is a public policy commentator and communication analyst

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