The Northern Governors Forum has expressed strong opposition to the proposed Tax Reform Bill submitted to the National Assembly.
The Forum argued that the proposed tax bill goes against the interests of northern states and other sub-national regions.
In a communiqué delivered by the Forum’s chairman and Governor of Gombe State, Mohammed Yahaya, the governors voiced disapproval over the suggested shift in Value Added Tax (VAT) distribution to a derivation-based model.
“The Forum notes with concern the contents of the recent Tax Reform Bill forwarded to the National Assembly, which we believe runs counter to the interests of the North and other sub-national regions, especially the proposal to amend VAT distribution to a derivation-based model,” the governors stated.
The Forum urged members of the National Assembly to oppose the bill, warning that it could jeopardise the well-being of their constituents.
“This is because VAT is remitted based on the location of companies’ headquarters and tax offices, rather than where the goods and services are actually consumed. Consequently, the Forum unanimously rejects the proposed tax amendments and calls on members of the National Assembly to resist any bill that may harm the welfare of our people,” they added.
The governors also called for equity and fairness in the implementation of all Federal Government policies and programmes to ensure that no geopolitical zone is marginalised.
The Forum emphasised the need for “equity and fairness in the implementation of all national policies and programmes to ensure that no region is disadvantaged or marginalised.”