Micheal Ale, a development expert and founder of the Global Initiative for Nigeria Development, has cautioned the Federal Government against implementing tax reforms he described as “a grossly capitalist policy” that could deepen poverty and stifle economic growth.

In a statement released Thursday in Ado Ekiti, Ale urged the government to prioritize creating an enabling environment and addressing social challenges rather than imposing additional taxes on citizens. “Tax reform will make the poor poorer and the rich richer,” he said.

Ale criticized the proposed reforms, arguing that sustainable development requires more than increased revenue. “For me, budgetary increase is not the sole indicator of national development. Environmental and social considerations are critical. Whatever is spent on infrastructure will not result in meaningful development if these other factors are neglected,” he explained.

Highlighting the adverse impact of increased taxation on the economically disadvantaged, Ale warned, “Even if companies are taxed, the adverse effect will trickle down to the people who patronize their products and services. The poor always pay for the rich, irrespective of how the tax is structured.”

To mitigate these effects, Ale proposed a progressive tax system based on financial capacity and stricter corporate social responsibility measures, urging businesses to invest in public infrastructure. He also emphasized the need for government revenues to be directed toward research, job creation, and human capital development.

“More budgetary allocations should not only focus on development but also on increasing research output, job creation, and training for human capital development,” he advised.

Ale called on the government to adopt inclusive and equitable policies, ensuring that reforms do not disproportionately affect vulnerable Nigerians.