BREAKING: Fresh Twist as NEC Asks Tinubu to Withdraw Tax Reform Bills, Gives Reason

• Vice President Kashim Shettima's National Economic Council (NEC) has demanded the withdrawal of the Tax Reform Bill proposed by President Bola Tinubu's tax committee
• Tinubu's tax committee, headed by Taiwo Oyedele, proposed a new sharing formula, but 19 northern governors said the bills would make the region poorer
• Seyi Makinde, the governor of Oyo state, who spoke after the meeting, said the NEC agreed on the withdrawal of the bills to provide more consultations

Due to its controversies, the National Economic Council (NEC) has decided to withdraw the Tax Reform Bill from the National Assembly. This decision was made to ensure that all stakeholders were involved in the process.

The NEC, headed by Vice President Kashim Shettima and comprising governors, made this recommendation after considering the concerns raised by various groups. The bills were proposed by President Bola Tinubu's tax reform committee, headed by Taiwo Oyedele.

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According to Daily Trust, Governor Seyi Makinde of Oyo State announced this decision while speaking to state House Correspondents after the NEC meeting. The bill's withdrawal is seen as a move to address the concerns and ensure broader consultation with stakeholders.

Why NEC demands reversal of Tax Reform Bill

According to Makinde, the NEC's decision to withdraw the bill highlights the importance of stakeholder engagement in policy-making. By doing so, the council aims to create a more inclusive and effective tax reform process.

Nineteen governors and other stakeholders, including the traditional rulers in northern Nigeria, have opposed the bill, stating that the region will be poor if the proposed sharing formula is passed into law.

According to the governors, the bills suggested that the bill recommended that states that generate more value-added tax would get higher allocation than those getting little, and most companies have their headquarters in the south while their customers are spread across the country.

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Presidency speaks on Tax Reform Bills

Legit.ng earlier reported that President Bola Tinubu's administration had dismissed the report that the proposed tax reform bills before the National Assembly were to short-change the north.

Bayo Onanuga, the president's spokesperson, said the bills were meant to establish a fairer system of VAT sharing formula.

The presidency further explained the four tax bills the executive council had presented before the national assembly.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng