Tax Reform Bill: Arewa Group Disagrees with Northern Governors, Backs Tinubu

• The Arewa Civil Rights Movement (ACRM) said it's disappointed by the Northern Governors Forum's opposition to President Tinubu's tax reform bills
• The bills reportedly aim to reform tax collection in Nigeria through four key pieces of legislation, including changes to the Value Added Tax (VAT) sharing template
• The ACRM urges northern lawmakers to prioritise their responsibility to constituents and disregard the governors' directive to reject the bills

Abuja, FCT—The Arewa Civil Rights Movement (ACRM) has expressed strong disappointment over the Northern Governors Forum's opposition to President Bola Tinubu's tax reform bills, which are currently before the National Assembly.

Legit.ng reports that the bills aim to reform tax collection in Nigeria through four key pieces of legislation: the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

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ACRM faults northern governors' claim

The proposed Value Added Tax (VAT) sharing template is at the heart of the controversy. It reportedly reduces the federal government's share from 15% to 10%.

While the allocation among states considers the derivation principle, encouraging states to attract businesses, the Northern Governors Forum claimed the North would be disadvantaged.

However, the ACRM described the governors' claim as disingenuous.

"The claim by the governors that the North would be disadvantaged by the VAT sharing formula on account of major companies being headquartered in southern states where their taxes would be captured is totally disingenuous," the group said.

ACRM urges lawmakers to disregard governors' directive

Speaking at a press conference on Wednesday in Abuja, Dr Agabi Emmanuel, national president of the ACRM, said that directing lawmakers to reject the bills due to issues with one is unjustified and oversteps the governors' authority.

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He urged northern lawmakers to prioritise their responsibility to constituents, warning that rejecting the bills could lead to recalls.

Northern governors urged to focus on revenue generation

The ACRM called on northern governors to concentrate on their duties, account for excess earnings from the Federation Account, and reassess sectarian extremism harming revenue generation.

Dr Agabi stressed that the North has a rich history of tax compliance and should seize the opportunity to create a more investment-friendly climate.

He said the tax reform bills aim to streamline tax collection, promote economic growth, and enhance revenue generation.

According to the ACRM, embracing these reforms will benefit Nigeria as a whole rather than perpetuating unnecessary drama and distraction.

"What we expect is that this is a wake-up call for us in the north to create a more investment-friendly climate. The governors cannot exploit sectarian extremism that discourages investments and expect profit-oriented organisations to site their headquarters in their states," the group said.

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"The Arewa Civil Rights Movement urges the northern lawmakers to disregard the directive from the state governors as they had no basis to issue such a directive. The lawmakers’ responsibility is to their constituents."

"We urge the Northern Governors to get back to work while also preparing to account for what they did with the excess earnings that came into their states’ coffers from the Federation Account since they assumed office on May 29, 2023.

Expert asks northern govs to embrace Tinubu’s tax bill

Meanwhile, tax expert Arabinrin Aderonke has appealed to the 19 northern governors to accept the proposed Tax Reform Bill, highlighting potential benefits for local communities.

Aderonke made this appeal in an open letter issued on Tuesday, October 29.

“This model is an opportunity for sustained growth that benefits both communities and the local economy in a meaningful way,” Aderonke stated.

Source: Legit.ng