Amid Widespread Fear, Experts Explain How Tinubu's Tax Reforms Will Reinvigorate Northern Economy

• Tinubu's tax reforms aim to expand revenue, improve infrastructure, and drive growth in Northern Nigeria
• The reforms promote fair revenue distribution and synergy among federal, state, and local governments
• Tax exemptions for small businesses will spur entrepreneurship and unlock the north’s potential

Experts from Northern Nigeria have expressed strong support for President Bola Tinubu’s Tax Reform Bills, emphasizing their potential to revitalize the region's economy.

At a town hall meeting in Abuja, organized by 200 civil society organizations, participants dismissed claims that the reforms were anti-north, highlighting their developmental focus.

Expanding revenue streams for the North

Dr. Mustapha Abubakar, a chartered accountant, explained that the reforms aim to broaden Nigeria's tax base and foster sustainable revenue generation.

"The bills are expected to increase government revenue, reduce poverty, and drive economic growth in the north.

"For instance, reducing the federal government’s VAT share from 15% to 10% while increasing state governments' share from 50% to 55% will ensure more funds for development projects," he said.

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Abubakar noted that these changes would directly impact infrastructure, education, and healthcare while the phased reduction of corporate tax from 30% to 25% would encourage business investments and job creation.

Encouraging synergy among governments

Barrister Maxwell Batusan of the Kano State Internal Revenue Service highlighted the collaborative intent of the reforms.

"The Joint Revenue Board Establishment Bill seeks to promote fairness in tax administration and equitable revenue distribution.

"The exemption of small businesses earning below N50 million from income tax will boost entrepreneurship and innovation in the region. These measures are essential to unlocking the north’s economic potential," Batusan said.

The meeting, chaired by Prof. Malfouz Adedimeji, Vice Chancellor of the African School of Economics, underscored the reforms' role in bridging regional disparities.

Organized by the Coalition of Northern Civil Society Groups and Concerned Northern Professionals, the town hall ended with a collective call for the reforms’ swift implementation to address the north’s economic challenges.

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"These bills have the potential to drive sustainable development and enhance quality of life in the north," Prof. Adedimeji concluded.

Source: Legit.ng