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
- This was after 19 northern governors and traditional rulers rejected the bill, claiming it 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 Nigeria Governors’ Forum (NGF), have called for the immediate withdrawal of the National Tax Reforms Bill.
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.
“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:
- 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
