19 Northern Governors Reject Tinubu’s Tax Reform Bill, Details Emerge
- On Monday, October 28, 19 northern governors held a strategic meeting in Kaduna state to address security and developmental issues affecting the region
- The meeting, led by the governor of Gombe state, Muhammad Yahaya, also had monarchs and the Chief of Defence Staff, General Christopher Musa, in attendance
- After key deliberations, they rejected the Nigeria Tax Reform Bill sent to the National Assembly recently by President Bola Ahmed Tinubu and cited their major concern
Legit.ng journalist Esther Odili has over two years of experience covering political parties and movements.
Governors of the 19 northern states have aired their strong displeasure with the recent Tax Reform Bill the federal government led by President Bola Ahmed Tinubu submitted to the National Assembly for approval.
Source: Facebook
The governors particularly rejected the proposed shift to a Derivation-based Model for Value Added Tax (VAT) distribution.
As reported by The Punch on Tuesday, October 29, they claimed that the proposed model would be at the disadvantage of the northern states and other less industrial regions.
The governors, under the auspices of the Northern States Governors’ Forum, voiced their strong opposition after a strategic meeting in Kaduna state on Monday, October 28.
‘Tax reform not favourable to north’
In a communiqué issued at the end of the meeting, the group decried the contents of the recent Tax Reform Bill, Daily Trust reported.
They disapproved of the policy and noted that the VAT is currently remitted based on the location of the company headquarters rather than where goods and services are consumed.
They added that the measure will negatively affect the distributed revenue from the Federal Accounts Allocation Committee (FAAC).
The communique read in part:
“The forum notes with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly.”
Read related articles on tax in Nigeria here:
- Tax reforms: President Tinubu moves to scrap FIRS, reason emerges
- Bill Gates speaks on Nigeria’s tax system
- Economic hardship: Makinde rejects new tax bill
FG proposes new pattern of tax payment
In a related development, Legit.ng reported that the federal government proposed a tax payment option that enables individuals to pay their taxes in instalments.
The Nigeria Tax Bill 2024, which was recently submitted to the National Assembly for approval, contained this.
If approved, this means that everyone will have the option to pay their taxes before the filing deadline, either in full at once or in instalments.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
Source: Legit.ng
