Northern Governors have formally rejected the tax reform bill recently submitted to the National Assembly by President Bola Ahmed Tinubu’s administration. In a communiqué released on Monday, the Chairman of the Northern Governors’ Forum, Muhammadu Inuwa, who is also the governor of Gombe State, expressed their concerns.
The tax reform bill, sent to the Senate and House of Representatives on October 3, 2024, includes significant changes, such as renaming the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS).
However, the governors particularly oppose the proposed amendment that would alter the distribution of value-added tax (VAT) to a derivative-based model.
They called on the National Assembly to reject the bill.”
“The Forum noted with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly.”
“The contents of the Blare against the interests of the north and other sub-nationals, especially the proposed amendment to the distribution of value-added tax (VAT) to a derivation-based model.”
“This is because companies remit VAT using the location of their headquarters and tax office and not where the services and goods are consumed.”
“In view of the foregoing, the Forum unanimously rejects the proposed tax amendments and calls on members of the National Assembly to oppose any bill that can jeopardise the well-being of our people.”
“For the avoidance of doubt, the Northern Governor’s Forum is not averse to any policies or programmes that will ensure the growth and development of the country.”
“However, the Forum calls for equity and fairness in the implementation of all national policies and programmes so as to ensure that no geopolitical zone is short-changed or marginalized,” they stated.
Meanwhile, the Forum called on Nigerians to remain calm amid economic hardship bedevilling the country.
