The recent tax reform plan that President Bola Ahmed Tinubu’s administration forwarded to the National Assembly was rejected by Northern governors.
This was revealed by the governors in a statement released on Monday by Muhammadu Inuwa, the governor of Gombe State and the chairman of the Northern Governors’ Forum.
This occurs after Tinubu sent a tax reform measure to the Senate and House of Representatives for passage on October 3, 2024.
The Federal Inland Revenue Service (FIRS) will henceforth be known as the Nigeria Revenue Service (NRS) as part of the bill’s sector reforms.
The proposed change to the value-added tax (VAT) distribution scheme to one based on derivatives is the main reason why the governors oppose the measure.
They demanded that the bill be rejected by the National Assembly.
The latest Tax Reform Bill was sent to the National Assembly, and the Forum expressed dismay at its contents.
“The proposed amendment to the distribution of value-added tax (VAT) to a derivation-based model, in particular, is against the interests of the north and other sub-nationals.”
This is due to the fact that businesses utilize the location of their tax office and headquarters to pay VAT rather than the area where the goods and services are used.
The Forum unequivocally condemns the proposed tax reforms in light of the aforementioned, and it urges National Assembly members to oppose any legislation that could endanger the welfare of our people.
To be clear, the Northern Governor’s Forum has nothing against any programs or policies that will guarantee the nation’s progress.
“But, in order to guarantee that no geopolitical zone is overlooked or underprivileged, the Forum demands equity and fairness in the execution of all national policies and programs,” they said.
The Forum urged Nigerians to maintain their composure in the face of the nation’s economic woes.
