Tax Bill: FG Speaks as Fears Over Possible Misuse of VAT Funds by Govs Grow Amid North's Opposition

• Bola Tinubu's government has addressed concerns about the use of funds generated from the proposed VAT reforms
• Dr Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms on Wednesday assured that VAT funds would not be mismanaged by state governments and local council chairmen
• Oyedele spoke as northern governors opposed the four tax reform bills presented to the National Assembly by Tinubu's FG, describing them as unfavourable

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

FCT, Abuja - President Bola Ahmed Tinubu's government has allayed Nigerians' fears that funds generated from the Valued Added Tax (VAT), as proposed in the bills being considered by the National Assembly, would be mismanaged by the government at the subregional levels.

Tax bill: FG allays fears of VAT funds mismanagement

This assurance was given by Dr Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, on Wednesday, December 11.

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Legit.ng reported that the northern governors openly rejected Tinubu's new tax reform bills, describing them as unfavourable to northern states and some southern states.

But Oyedele noted that rather than mismanagement, the proposed tax reforms bills had made specific provisions for what the VAT proceeds should be spent on.

As reported by The Nation, he also said that the role of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has nothing to do with VAT because it is not part of revenues captured in the nation’s constitution.

Speaking further, Oyedele asserted that since the bills contained a framework for how to generate taxes and how to spend it, no governor or local governor authority in the country would spend VAT on white elephant projects.

Oyedele said:

“We have a document we call the National Fiscal Policy that speaks to our principles and framework as a country around taxation; who should pay tax, how much should they pay, how should they pay, among other issues.”

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“In fact, if we start collecting VAT at state level, you know the biggest winner will be the federal government. The federal government will keep more than half of the VAT we are collecting today.”

Oyedele made these assertions when he spoke at one-day roundtable on the tax reform bills organised by the National Institute for Legislative and Democratic Studies (NILDS) in Abuja.

Read more about the tax reform bills

• Lawmaker suggests Hausa translation for tax reform bills
• Reform bills: Labour demands review of tax exemption limit for workers from Tinubu

Tax bills: Sowunmi blames Tinubu for northern opposition

Meanwhile, Legit.ng reported that PDP chieftain Segun Sowunmi expressed concern over the four tax bills presented to the National Assembly.

Sowunmi blamed President Tinubu for the current pushback the bills have been getting and stated the major reason for stiff opposition from the northern region.

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Tax bills: PDP chieftain Sowunmi mentions Tinubu's biggest mistake amid northern opposition

Legit.ng reported that the northern governors opposed the tax reform bills, noting that the proposed legislation would disadvantage northern states and other less industrialized regions.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng