The National Economic Council (NEC) has raised concerns about the Tax Reform Bill submitted by President Bola Tinubu to the National Assembly.
The bill was sent to NASS following the report and recommendations of the Presidential Committee on Fiscal and Tax Reforms, established by the President to enhance the country’s revenue generation.
NEC unanimously called for the bill’s withdrawal.
This was among the resolutions reached at the National Economic Council meeting, chaired by Vice President Kashim Shettima at the Presidential Villa in Abuja.
Following the meeting, governors highlighted the need for alignment among stakeholders regarding the proposed reforms.
Governor Seyi Makinde of Oyo State, who briefed journalists, noted that NEC observed the need for thorough consultations to include the views of stakeholders, including state governors, to ensure the law benefits all Nigerians.
“NEC received a presentation from the Chairman of the Presidential Committee on fiscal policy and tax reforms, which focused on fair taxation, responsible borrowing, and sustainable spending,” he said.
“The Council recognised that the country is underperforming on various indices, such as yield from major revenue sources and tax-to-GDP ratio.
“After extensive discussions, NEC stressed the importance of alignment among stakeholders for these proposed reforms.
“As a result, the Council recommended withdrawing the bill currently before the National Assembly on tax reforms to allow for broader consultations and build consensus around these reforms for the benefit of the entire country. This would also help clarify the vision and direction of the country’s tax reform, given the significant miscommunication and misinformation surrounding it,” Governor Makinde said.
Northern Governors Reject Bill
This move followed the Northern Governors’ Forum’s recent rejection of certain proposals, particularly the VAT-sharing template in one of the bills.
At a meeting in Kaduna, northern governors called for fairness and equity, noting that VAT is remitted based on the location of a company’s headquarters rather than where goods and services are consumed. In view of this, the forum collectively rejected the proposed Tax Amendments and urged National Assembly members to oppose any bill that could compromise the well-being of northern residents, stated Inuwa Yahaya, chair of the forum.
“For clarity, the Northern Governors’ Forum does not oppose policies or programmes aimed at fostering national development. However, the forum insists on fairness and equity in implementing all national policies to ensure no region is marginalised,” he said.
Attending governors included Uba Sani of Kaduna State, Inuwa Yahaya of Gombe, Dauda Lawal Dare of Zamfara, Abdullahi Sule of Nasarawa, Babagana Zulum of Borno, Bala Mohammed of Bauchi, AbdulRahman AbdulRazaq of Kwara, and Ahmadu Umaru Fintiri of Adamawa. Other governors were represented by their deputies.
Governor Yahaya of Gombe State, while reading the communiqué from the meeting, said the tax bills oppose northern interests and instructed northern legislators to reject the proposals.