36 States Reject Tinubu’s Tax Reform Bill, Details Emerge

36 States Reject Tinubu’s Tax Reform Bill, Details Emerge

  • 36 states have rejected the National Tax Reforms Bill introduced by President Tinubu's government
  • The governors urged President Tinubu to withdraw the controversial tax bill submitted to the National Assembly for approval, for further consultations with stakeholders
  • This was after 19 northern governors and top traditional rulers from the region rejected the bill, claiming that the proposed model would be at the disadvantage of the northern states and other less industrial regions

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Legit.ng journalist Esther Odili has over two years of experience covering political parties and movements.

State House, Abuja - In a decisive move, the 36 state governors of Nigeria under the aegis of the the Nigeria Governors’ Forum (NGF), have called for the immediate withdrawal of the National Tax Reforms Bill.

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36 govs reject Tinubu’s tax reform bill, gives reason
Governors oppose Tinubu’s tax reform bill. Photo credit: Abdulrahman Abdulrazaq, Asiwaju Bola Ahmed Tinubu
Source: Facebook

This demand threatens the comprehensive efforts undertaken by the Taiwo Oyedele-led Presidential Fiscal Policy and Tax Reforms committee.

The governors, speaking during Thursday's meeting of the National Economic Council (NEC), asked President Bola Ahmed Tinubu to withdraw the Reforms Bill from the National Assembly for more comprehensive consultations.

Governor Seyi Makinde of Oyo state announced this as part of resolutions reached at the council’s 144th meeting chaired by Vice President Kashim Shettima at the State House, Abuja.

Makinde disclosed to the press that council members agreed that it was necessary to allow for consensus building and understanding of the bills among Nigerians.

The meeting, which included a presentation by Oyedele, ultimately failed to persuade the governors regarding Tinubu’s plan to overhaul the taxation system aimed at achieving effective economic growth and increasing the tax-to-Gross Domestic Product ratio.

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“Today (Thursday), NEC took a presentation from the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. The primary focus is fair taxation, responsible borrowing and sustainable spending,” Makinde stated.

This move by the 36 governors was after governors of the 19 northern states aired their strong displeasure with the Tax Bill.

The governors particularly rejected the proposed shift to a Derivation-based Model for Value Added Tax (VAT) distribution.

The Punch reported on Friday, November 1, 2024.

Read related articles on tax in Nigeria here:

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.

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Tinubu’s govt gives N25,000 to 25 million Nigerians

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.

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Source: Legit.ng

Authors:
Esther Odili avatar

Esther Odili (Politics and Current Affairs Editor) Esther Odili is a journalist and a Politics/Current Affairs Editor at Legit.ng with 6+ years of experience. Before joining Legit.ng, Esther has worked with other reputable media houses, such as the New Telegraph newspaper and Galaxy Television. She Holds OND and HND in Mass Communication from NIJ, where she was recognized as the best student in print journalism in 2018. Email: esther.odili@corp.legit.ng.